Insights

A bank-focused brokerage firm recently suggested a dramatically lower cut-off for Russell 2000 inclusion than most expected for 2020. Bear in mind banks added to the Russell 2000 outperformed their benchmark by 34% in the six months prior to announcement during 2014-2019. This effect seems only likely to intensify – index investing is increasingly de rigeur, while active managers often charge too much to outperform. We are pleased to be in position to take advantage of this effect…