Explore the Small Cap premium with Gary Quinzel in this Investment Management Foundations episode. Learn why Small Cap stocks have underperformed and what it means for investors.

U.S. Small Cap stocks have had an ugly year in 2014; as of 10/28/2014, U.S. Small Cap stocks (as measured by the Russell 2000 Index) trailed U.S. Large Cap stocks (as measured by the S&P 500) by 10%. Investors with a well-diversified portfolio—which includes small caps—have watched their returns trail major market indices. It wasn’t supposed to be this way.