Small Cap Update
January 24, 2022
Avoidance of negative-earning biotechs helps small cap strategy outperform benchmark
The strategy returned 8.1% gross of fees in Q4 2021 versus 2.1% for the Russell 2000 benchmark. The strategy ended the year with a 30% rate of return gross of fees – a 15.2% rate of outperformance relative to the benchmark. The best performing sector was Health Care, driven by security selection and an avoidance of the negative-earning biotech stocks.