In a year when the S & P 500 is touting a 15.5% advance, small-cap stocks look underwhelming – but investors shouldn't shy away from them, said Julie Biel, chief market strategist at Kayne Anderson Rudnick.
"I don't think you want to avoid them — they're part of a balanced diet," said Biel, who is also a portfolio manager at the firm.
The benchmark small-cap index Russell 2000 is up roughly 1% year to date, whereas the S & P 500 has rallied almost 16%, largely thanks to the strength of Nvidia and other megacap tech stocks.
The S & P 400 mid-cap index has also fallen short of its large-cap counterpart, up a modest 5% in 2024.
Biel herself manages a small- and mid-cap growth portfolio and takes a long-term investment approach.
Persons:
Julie Biel, Kayne Anderson, Biel, Russell, Ryan
Organizations:
Nvidia, Russell, Isaac, Ryan Specialty, IFS, West Pharmaceutical Services
Locations:
Biel