Finding Value in US Small Cap Stocks

William Hench at Royce & Associates is backing technology names and infrastructure plays as he positions his Bronze-rated portfolio to be as cheap as possible

David Brenchley 15 February, 2019 | 2:09PM

Smartphone, semiconductors, infrastructure, US stocks

The large-cap US stocks, particularly those like the FAANGs, garnered much attention after heavy share price falls in the final three months of 2018. The Russell 1000, a proxy for large-cap USA, declined almost 14% from October to December; the NASDAQ 100, the tech heavy index, ended the period down nearly 17%.

But it was further down the capitalisation chain that really felt the ramifications of the stock market correction. The Russell 2000, a proxy for the small-cap universe, shed over a fifth of its value in the fourth quarter.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Insteel Industries Inc25.26 USD-0.94
Onto Innovation Inc44.85 USD2.66
Raytheon Technologies Corp73.91 USD0.14

About Author

David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk

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