Greg Davis, the firm's president and CIO, told CNBC's Bob Pisani that the small-cap rebound makes sense from a valuation standpoint and could keep going.
"Small caps, to us, still look relatively cheap — relative to some of the large-cap alternatives that are out there," Davis said.
The small-cap Russell 2000 is up nearly 10% in July, while the S & P 500 is flat and the Nasdaq Composite is down 2%.
Small-cap value , in particular, has outperformed, including the Vanguard Russell 2000 Value ETF (VTWV) , which is up 11.9%.
The small-cap rally comes after this bull market was mainly led by a handful of Big Tech stocks, including Nvidia and Microsoft .
Persons:
Greg Davis, CNBC's Bob Pisani, Davis, Russell, Vanguard Russell, it's, Jack Bogle, Salim Ramji
Organizations:
Vanguard, Nasdaq, Big Tech, Nvidia, Microsoft, BlackRock