U.S. Small Cap Investing – Issues and Expectations

Is conventional wisdom correct in assuming that the small-cap sector of the U.S. equity market is less efficient than the large-cap sector? And what, exactly, defines the small-cap sector? This report seeks to answer those questions and others by sorting through the relevant small-cap indices and the biases of manager databases. It also outlines the ideal conditions for active management in the small-cap sector and provides guidance for curious small-cap investor.