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Growth Swamps Value In 2007

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Lipper and Co. is out with estimates on 2007 fund performance, and the tune is a simple one: The times are changing.

After years of small-cap and value outperformance, large-cap and growth funds were the highlights of the year, according to Lipper. Lipper said that the best-performing fund style box for 2007 is mid-cap growth, with the average fund delivering a 17.0% return. Large-cap growth came in second, with a 14.9% result, followed by small-cap growth at 9.4%.

On the flip side were large-cap value at 2.7%, mid-cap value at 2.4% and small-cap value with a loss of 4.9%. The nearly 22% swing between mid-cap growth and small-cap value is the largest swing between two growth/value segments since the Tech bubble.

Growth Vs. Value - Lipper Index Performance

Type

2007

2006

2005

2004

Mid Cap Growth

17.0%

8.6%

9.8%

13.2%

Large Cap Growth

14.9%

5.6%

6.2%

7.3%

Small Cap Growth

9.4%

10.2%

5.9%

10.9%

Large Cap Value

2.7%

18.0%

5.8%

12.4%

Mid Cap Value

2.4%

15.9%

9.7%

19.3%

Small Cap Value

(4.9%)

16.5%

6.0%

20.6%

A look at the best-performing market segment over recent years shows just how big a shift occurred between 2007 and 2006. In 2006, all three value segments outperformed all three growth segments—the exact opposite of what occurred this year.   

Going back further, we see that mid-caps in general have had a good run recently, and that strong segment returns do not tend to persist.

Best-Performing Growth/Value Segment - Lipper

2007

2006

2005

2004

Mid Cap Growth

Large Cap Value

Mid Cap Growth

Small Cap Value

Large Cap Growth

Small Cap Value

Mid Cap Value

Mid Cap Value

Small Cap Growth

Mid Cap Value

Large Cap Growth

Mid Cap Growth

Large Cap Value

Small Cap Growth

Small Cap Value

Large Cap Value

Mid Cap Value

Mid Cap Growth

Small Cap Growth

Small Cap Growth

Small Cap Value

Large Cap Growth

Large Cap Value

Large Cap Growth

 

 

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