Monetary Conditions Favor Smaller Firms According To Historical Data
DUNCANVILLE, Texas, June 24 /PRNewswire/ -- Smaller capitalization firms have historically performed well when monetary conditions are easing according to a recent study published by Morningstar Five-Star fund manager Joseph R. Dancy, Adjunct Professor of Law at Southern Methodist University and manager of the LSGI Venture Fund L.P.
"The small-cap effect -- the tendency for smaller companies to perform better than larger firms -- is most pronounced when monetary conditions are accommodative. The relationship between monetary policy and small cap out- performance is statistically significant and pervasive across markets and time periods," said Professor Dancy.
Fortune Small Business magazine recently released a list of the fastest growing 100 small public companies based on revenue and earnings growth and return to investors in their July 7, 2008 issue. Many of these firms have attractive quantitative attributes that may be attractive to investors looking for capital gains according to Dancy.
Dr. Dean Johnson, Professor of Finance and Director of the Applied Portfolio Management Program (APMP) at Michigan Technological University's School of Business and Economics, commented, "The small capitalization sector is a very inefficient part of the market and therefore provides opportunities for active managers to generate excess returns." The Fortune Small Business 100 fastest growing list includes nine companies that are in the LSGI portfolio, including Arena Resources (NYSE: ARD), Bolt Technology, Ebix (NASDAQ:EBIX), GeoResources Inc. (NASDAQ:GEOI), PrimeEnergy, Almost Family, Balchem (NASDAQ:BCPC), Key Technology(NASDAQ: KTEC) and Art's Way Manufacturing (NASDAQ:ARTW).
The study of historical market data, small stock performance, monetary conditions, and the ability of active managers to generate excess returns is available at the LSGI Advisors Inc. website at http://www.lsgifund.com/ . The LSGI Venture Fund L.P. is a Morningstar Five-Star rated fund.
About LSGI Advisors: LSGI Advisors Inc. manages the LSGI Venture Fund L.P., a Texas limited partnership.
For more information please visit: http://lsgifund.com/ Email: For More Information, Contact:
Joe Dancy, LSGI Advisors Inc. 972-780-1805 office
214-263-5201 cell
DATASOURCE: LSGI Advisors Inc.
CONTACT: Joe Dancy, LSGI Advisors Inc., +1-972-780-1805 office, +1-214-263-5201 cell Web site: http://www.lsgifund.com/
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