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Style-Box Update, Small-Cap And High-Yield, And Sector Returns

Published Mon, 01 Jun 2020 06:47:39 -0400 on Seeking Alpha

Nothing has really changed yet in terms of “style-box” returns with Growth outpacing Value and Large-Cap beating Small-Cap.
The last time the small cap asset class beat large-caps was 2016.
Ready to allocate some small-cap exposure when the numbers justify that allocation.

Nothing has really changed yet in terms of “style-box” returns with Growth outpacing Value and Large-Cap beating Small-Cap.
Late in the week of May 222nd, The CFA Society of Chicago held a webinar with Gina Adams of Bloomberg (one of Bloomberg’s Equity Strategists), which was very informative.
One area of interest Gina covered on the call was the small-cap sector’s out-performance attribution tends to be correlated with high-yield credit out-performance.
Readers should look at the above spreadsheet and note that the last time the smallcap asset class beat large-caps was 2016, which was also a year when corporate high-yield credit spreads bottomed in Q1 ’16 when the price of crude oil bottomed at $28, and then had a pretty good year of returns, with the HYG returning 13.9% (NAV). Value across all market caps performed very well both on a relative and an absolute basis as well.
Though to be fair, high-yield’s (NYSEARCA: HYG) 2019 return was 14.23%, smallcaps had a good year, but still fell shy of the large-cap segment.
Sector returns:

As readers know, we are big fans of Bespoke, and Bespoke has given us some perspective on sector outperformance over the last 90 days.
Readers should note the sector performance since May 13th, the bottom table in the above two charts.
Summary / conclusion: Hopefully readers get some perspective from the style-box update in terms of asset classes within the equity market. Don’t ever forget there is always “the game within the game” which helps me evaluate what’s happening within the overall capital markets, since writing about it keeps me focused on the detail.
Obviously large-cap growth continues... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
CORNERSTONE TOTAL RETURN FUND 11.38   0.0 0.00 2.48 22.00
MFS INTERMEDIATE HIGH INCOME FUND 2.68   0.0 0.00 0.00 9.08
CS HIGH YIELD BOND FUND 2.58   0.0 0.00 0.00 8.87
PIONEER HIGH INCOME TRUST 9.29   0.0 0.00 0.00 8.72
WELLS FARGO ADV INCOME OPP FUND 8.20   0.0 0.00 0.00 8.61
ARES DYNAMIC CREDIT ALLOCATION FUND 15.08   0.0 0.00 0.00 8.56
CREDIT SUISSE ASSET MANAGEMENT INCOME FUND 3.16   0.0 0.00 0.27 8.52
WA HIGH INCOME FUND II 6.76   0.0 0.00 0.00 8.27
BLACKROCK CORPORATE HIGH YIELD FUND VI 10.76   0.0 0.00 0.00 8.01
FIRST TRUST STRATEGIC HIGH INCOME FUND II 12.35   0.0 0.00 0.00 7.77
BLACKROCK DEBT STRATEGIES FUND 10.78   0.0 0.00 0.00 7.63
NEUBERGER BERMAN HIGH YIELD STRATEGIES FUND 12.01   0.0 0.00 0.98 7.45
MASSMUTUAL CORP INV 16.54   0.0 0.00 1.20 7.27
SPDR BARCLAYS CAPITAL HIGH YIELD BOND ETF 108.94   0.0 0.00 6.07 5.58
ISHARES IBOXX $ HIGH YIELD CORPORATE BOND FUND 87.32   0.0 0.00 4.60 5.27
SPDR DOW JONES INDUSTRIAL AVERAGE ETF TRUST 272.32   0.0 0.00 5.67 2.10
PROSHARES ULTRASHORT S&P 500 28.97   0.0 0.00 0.00 1.97
POWERSHARES QQQ TRUST SERIES 1 193.23   0.0 0.00 1.49 0.78

CORNERSTONE TOTAL RETURN FUND - CRF
CORNERSTONE TOTAL RETURN FUND - CRF  


Older articles featuring Cornerstone Total Return Fund (CRF):
Dollar Slumps As Yields Rise
More On Average, Annual Return And Tough Week For High Yield
Bear Market Thoughts: Is Closed-End Fund Investing 'Chasing Yield?'
Income Lab Ideas: Dividend Reinvestment Plan
Dividends By The Numbers In January 2020
Stocks Yielding More Than Bonds Again
A Steeper Yield Curve Should Benefit Financial Stocks
Dividend Yields Around The World
Dividends By The Numbers In October 2019
Yield Curve Disinversion

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