Capital Markets: Observations & Insights

Small Caps Due for a Comeback ​ Performance

• Small caps dramatically underperformed large caps in 2017 in stark contrast to their historic outperformance

• Taken together, these data points may imply small caps are poised for a comeback

Small Cap Performance Relative to Large Cap Performance

400

253

Small caps underperformed large caps last year in contrast to their long term outperformance

193

200

20

0

-200

-400

-600

-800 Basis Points (Annualized)

(860)

-1,000

1 yr

5 yr

10 yr

20 yr

Source: FactSet as of 12/31/17 using S&P Small Cap and Large Cap indices.

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