Articles by Phil Segner, CFA Co-Portfolio Manager & Sr. Analyst

Nudged higher by Small Cap outperformance in May, our premium is little changed month-over-month and remains in its new 5-10% habitat.

Small Cap Growth stocks were the clear outperformers in May, up almost 4%. Growth stocks are still in favor when comparing YTD figures, with the performance gap especially prevalent in the Small and Large Cap spaces.

S&P 500: Yet Another Record High Close In May

The first month of Q1 earnings for 2015 registered an Up/Down Ratio of 1.63. After three consecutive above average quarters, the ratio did a swan-dive deep into below average territory.

After residing in the 15-20% neighborhood for the past two years, the Small Cap premium may be finding a new home in the 5-10% range. Weaker earnings growth, and the outperformance of Large Caps over the last 18 months, are pushing the two P/E measurements closer to parity.

Value stocks, recent underachievers, regained some lost ground in April. Large Cap Value was the month’s big winner—helped in large part by rallying energy firms. Large Cap Growth still leads YTD by more than 5%.

Gainers outnumbered losers by more than 2 to 1 for the largest 25 firms, while the overall market turned in uninspired results. Still, Q2 is off to a positive start for the S&P 500 as we look for the 10th consecutive quarter of gains for the index.

The final month of Q4 earnings reports registered an Up/Down Ratio of 1.48. If you recall, we entered the final month of earnings with a well above average, two-month ratio of 1.67. On a stand alone basis, March had a very weak ratio of 1.06.

Small Cap Premium Bounces Back To 10%

Growth Continues Run In Q1

S&P 500: Home On The Range

Up/Down Earnings: Ratio Still Above Average

Small Cap Premium Plunges To 5%

Growth Stocks Dominating Value

Our Equal Weighted measurement slightly outperformed the Cap Weighted index and now leads by 50 bps for the year.

Up/Down Earnings: Solid Start With Q4 Reports

Small Cap Premium Sinks To 13%

Momentum Continues For Growth Stocks

S&P 500: Worst Month Since Last January

Up/Down Earnings: Above Average Final Number For Q3.