Recovery on the Horizon?
We examine the historical behaviors of small cap stocks, their volatile nature, and how these movements can lead to opportunities.
Market drawdowns are fairly common in small cap equities. Over the last 25 years, the Russell 2000 Index has had an average intra-year decline of -20%. Despite regular pullbacks, small caps have recovered to a positive annual return in 17 of those years!
How will 2022 end? If history is any indication, investors could be rewarded if they remain resilient.
Active Management in Small and Midcaps
Cambiar believes that active management with a bias towards quality businesses should allow investors an easier path to navigating these intra-year declines.
We invite you to learn more about our investment offerings.
Certain information contained in this communication constitutes “forward-looking statements”, which are based on Cambiar’s beliefs, as well as certain assumptions concerning future events, using information currently available to Cambiar. Due to market risk and uncertainties, actual events, results or performance may differ materially from that reflected or contemplated in such forward-looking statements. The information provided is not intended to be, and should not be construed as, investment, legal or tax advice. Nothing contained herein should be construed as a recommendation or endorsement to buy or sell any security, investment or portfolio allocation. Securities highlighted or discussed have been selected to illustrate Cambiar’s investment approach and/or market outlook and are not intended to represent the performance or be an indicator for how the accounts have performed or may perform in the future. The portfolios are actively managed and securities discussed may or may not be held in client portfolios at any given time.
Any characteristics included are for illustrative purposes and accordingly, no assumptions or comparisons should be made based upon these ratios. Statistics/charts may be based upon third-party sources that are deemed to be reliable; however, Cambiar does not guarantee its accuracy or completeness. Past performance is no indication of future results. All material is provided for informational purposes only, and there is no guarantee that the opinions expressed herein will be valid beyond the date of this communication.