Part 3

Small Caps - Passive or Active Investing?

The debate between active and passive investing is especially pronounced in the U.S. small-cap equity market. Advocates of active management argue that small caps represent a less efficient segment of the market, offering opportunities for skilled managers to generate alpha (returns above benchmark). On the other hand, proponents of passive investing point to consistent long-term data showing that most active small-cap managers underperform benchmarks over extended periods.

Putnam Investment...

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Intermediate icon
Intermediate
Woe is Small Caps. Can They Outperform Any Time Soon?
4 Lessons
~10 mins in total
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