A Closer Look at 2010 Returns of the S&P 500

By on January 10, 2011

Bespoke Investment Group recently posted a great chart revealing the returns of the S&P 500 delineated by the market cap of the companies in the index.  It graphically shows that the larger companies have seriously underperformed the average stock’s return of 19% (click on chart for larger image).

SMA Comment:  Renowned value investors including Jeremy Grantham, Donald Yachtman and Bill Miller have been touting the virtues of high quality large caps for quite awhile now.  There should be some reversion to the mean eventually for this unloved group.

Source: Bespoke Investment Group

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