Midcapitalization stocks outperformed large- and small-cap stocks in the five-and 10-year periods ended June 30 a report by Lynch & Mayer Inc., New York, found.
Citing figures from the Center for Research of Security Prices Indices, the firm found midcaps gained a compound annual return of 14.6% for the 10-year period, compared with 11.7% for small caps and 14.3% for large caps. In the five years, midcaps showed a return of 14.7%, compared with 11.9% for large caps and 13.9% for small caps.
In the three-year period, midcaps outperformed large caps with a return of 16% vs. 12.8%; but small caps gained 17.5%. In the year to date through Sept. 30, the S&P MidCap 400 and the Russell Midcap indexes gained of 29.1% and 30.2% respectively.
The Standard & Poor's 500 Stock index gained 29.77%.
"Since 1979, midcaps have outperformed the S&P 500 in eight years (average outperformance 6.5%), underperformed in five years (average underperformance 5.3%) and have had three years of approximately equal returns," the report said.