Small cap managers, especially quality-oriented ones, should bench against the S&P 600 (and its growth / value variants) rather than the Russell 2000. "Not buying stocks that lose money" is a pretty consistent winner at the index level. You should add value on top of that.
@ShortSightedCap and the funds benching against rty have positive flows, right?
@ShortSightedCap For those value investors check out $TREP. It’s a small business services company. Based out of California that I feel is extremely undervalued. Usually these companies trade 1.2 times book, this is currently trading at .1 times book.
@ShortSightedCap Idk about this…Connor Haley of Alta Fox has only benchmarked against the S&P500… i) Everyone knows what that is. ii) It is still hard to beat. Maybe an exception is if you only have investors/institutions who put money with you
@ShortSightedCap Yep, it's one of the great mysteries why the Russell is the 'known' index, not the S&P600, which gets rid of some of the dross, and I didn't know it for a while.