Active small-cap growth strategies held up well in 2018 relative to their counterparts. The group had an average excess return of 7.15%, well above the other major fund groups, with 78.3% of the 23 funds that have so far reported to eVestment having positive excess returns. Large-cap growth was the only other cohort with average positive excess returns for the year, despite a down fourth quarter.
Small-cap value funds couldn't hold on to their 2017 magic as 2018 returns were in stark contrast to the year before. The year also proved to be tough on small-cap value manager selection, with only about 18% beating their respective indexes.