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Growth Trumped Value in 2007

by: Index Universe January 02, 2008 | about stocks: IJS / IJT / IVE / IVW / IWP / IWS

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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.

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%

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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