Global Small Cap Stocks: Reexamined and Redefined

78 Pages Posted: 20 Jun 2008

Date Written: July 1, 2007

Abstract

The small-cap premium has not been apparent consistently in developed markets outside North America since 1989. Why? In this comprehensive study, the Brandes Institute investigates existing methodologies for defining the global small-cap universe and their relationship to performance. We also introduce regional and country universes designed to analyze constituent-level fundamentals and their influence on historical performance differences.

Our research reveals that North American small caps have shown differentiating fundamental traits vs. their non-North American small-cap peers. But these differences in fundamentals may not fully explain the performance disparity. Perhaps the origins of a company and its point on its lifecycle are different across regions. The Brandes Institute intends to examine the performance characteristics of lifecycle groupings among small caps across regions and sectors.

Keywords: small cap, stocks, investors, investment, foreign stock, international investing, global small cap, lifecycle

Suggested Citation

Institute, Brandes, Global Small Cap Stocks: Reexamined and Redefined (July 1, 2007). Brandes Institute Research Paper No. 2007-03. Available at SSRN: https://ssrn.com/abstract=1147126 or http://dx.doi.org/10.2139/ssrn.1147126

Brandes Institute (Contact Author)

Brandes Investment Partners ( email )

11988 El Camino Real, Suite 500
P.O. Box 919048
San Diego, CA 92191-9048
United States

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