Commentary and Research Papers
August 19, 2025
2024
Pinnacle makes the case that current market conditions are encouraging for small caps to reward investors in its recent white paper entitled “It’s Time to Own U.S. Small Capitalization Equities,” as highlighted in a recent issue of Institutional Investor.
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Commentary and Research Papers
August 19, 2025
2024
Small-cap stocks have been underperforming larger ones for the second longest stretch since the 1930s. But there are signals that small-cap stocks may be coming out of their dark stretch. As outlined in a report by advisor Pinnacle Associates, the widening gap began in December 2016. In the subsequent seven years ending November 30, 2023, small caps returned 46.25 percent, compared to the S&P 500 generating returns nearly triple that mark at 130.9 percent.
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August 19, 2025
2024
After a ferocious market rally in November and December, stocks were mixed in January. Some consolidation was to be expected, after a two-month rally that saw the stock indexes rise anywhere from roughly 15% (large caps), to 20% (mid caps), to 23% (small caps). Developments during the month were generally positive, as economic and inflation data continued to be favorable. Hanging over the market were continued geopolitical concerns over events in the Middle East, most notably the attacks on commercial shipping by the Iran-allied Houthis in Yemen and a potential widening of the war.
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August 19, 2025
2024
What a difference a year can make. US equities rose in 2023, with the major indices erasing their 2022 declines. The Dow achieved an all-time high, while the S&P closed the year a touch short of its record close from January of 2022. The positive year for the market appeared to be in jeopardy as stock pulled back throughout Q3 before bottoming in late October and rallying into year-end.
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August 19, 2025
2024
According to our preliminary results, the Small Capitalization Portfolio Composite was up 12.12%, net of fees, for the quarter, slightly behind the 14.03% gain for the Russell 2000 Index and the 15.26% gain of the Russell 2000 Value Index1. For the year, the Portfolio Composite was up 12.53%, net of fees, versus up 16.93% for the Russell 2000 Index and up 14.65% for the Russell 2000 Value Index.
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August 19, 2025
2024
Stocks posted their second consecutive month of robust gains, as a powerful two month rally off of the late October lows pushed the quarterly and annual returns solidly into positive territory. The reason for December’s rally was similar to that for the previous month’s rally: another favorable inflation reading that led observers to see disinflation in the data, with the Fed following up with increasingly dovish comments.
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Founded in 1984, Pinnacle Associates, Ltd. is a forward thinking, multi-billion dollar investment advisory firm focused on transparency and putting clients first. We provide advice to individuals and families, institutional investors and other financial institutions.
