Diversify or die

摘要

Over the last decade, small-cap equity outperformance has been significant on a global basis. Firstly, there are a large number of different definitions with regard to how investors classify a company as a small cap. Generally it is defined by the size of market capitalization (market cap) of the company. The ranges within various global small-cap indexes are between $500 million and $5 billion with the average market cap of most small-cap indexes in the $1-billion to $1.5-billion range. Looking back over the last 10 years, global small caps have returned on average 7.6 per cent per year versus 0.5 per cent for global large caps.