Small-cap territory has been relatively kind to active managers in the long term.
That may be because the small-cap market is less efficiently priced. Active managers may have more opportunities to find mispriced stocks in markets where information is less accessible. Over 43% of active small-cap strategies survived and outpaced their average passive rival in 2024, a minor improvement over 2023. However, this rate drops to 26% over a ten-year period.
Overall, active small-growth managers had the best odds of success among US equity categories in the last decade, with the rate standing at around 35%.
Meanwhile in Europe, active managers in the eurozone small-cap equity category had a one-year success rate of 10.2% throughout…
Aug 01 2025
