Mid-cap value has been one of the most consistently performing asset classes over the last 25 years. With a market segment that is often overlooked, and in an investment style that the markets seem to hate, mid-cap value may be the most-hipster equity-style box out there.
As multifactor investing has gained traction in recent years, the investing community has largely accepted and focused on five primary factors: size, value, quality, momentum and low volatility. We did not include low volatility as an alpha-seeking pure stock selection factor in our methodology. There are ultimately two reasons why.
One of the most anticipated reports in the asset management industry is S&P Dow Jones’ SPIVA® U.S. Scorecard, a semiannual report that provides a glimpse at the performance of active managers in each asset class. With the start of the financial crisis nearly a full decade ago, we dig into the report’s 10-year numbers to get a comprehensive picture of the state of the active universe.