Brief rallies for US small caps - Legg Mason

George, manager of the Dublin-domiciled Royce Smaller Companies fund and the UK ICVC Legg Mason US Smaller Companies fund, expects small cap rallies to be short-lived over the next year to eighteen months. In the last quarter, the small-cap Russell 2000 index rose 0.6% in contrast to a decline of 2.7% for the large-cap S&P500. This was a quarter that included a strong rally, followed by a similarly strong decline in dollar terms. The strength of the rally early in the second quarter propelled the Russell 2000 ahead of the S&P 500 and almost into positive territory year-to-date, befor...