
Style Box Update: Small‑Cap Value Outperforming Small‑Cap Growth for the First Time Since 2022
•By ADMIN
According to a recent *Seeking Alpha* analysis, the investment “style box” has shown a significant shift at the end of 2025: **small‑cap value stocks have started to outperform small‑cap growth stocks** — a development not seen since 2022.
For the past 12 quarters, growth stocks dominated value stocks in total returns across large‑, mid‑, and small‑cap segments. That streak ended with the latest quarter’s data, where value started to outshine growth specifically in the small‑cap category.
The author, Brian Gilmartin, CFA, notes this early sign of potential rotation but cautions that it’s too early to declare a permanent trend reversal. Investors are watching closely because a shift from growth to value could influence broader market indices like the S&P 500 and Nasdaq, which currently have substantial growth exposure.
Other market signals — such as strength in commodities like oil and gas and robust international equity performance in 2025 — may support the early value resurgence, but continued data will be needed to confirm a sustained change in leadership.
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