Bringing up baby: The no longer nascent segment, SMID Caps, takes a step into maturity with outperformance in two official indexes. (Smid Cap Stocks).(Statistical Data Included)

Buyside, April, 2002 by Banker, Bernadette

The recently discovered market segment coined the 'smid caps' by Prudential's Steven DeSanctis is an intriguing combination of small caps and mid-caps. What's more, it's become official, thanks to two new indexes.

DeSanctis, director of small-cap research at Prudential Securities, has done extensive research on the segment, in which the typical companies have market capitalizations ranging between $1 billion and $5 billion. DeSanctis says that the segment's attraction is that it provides diversification away from the dominant large-cap companies without the liquidity risks of the smaller stocks.

Because of growing interest in this area, DeSanctis notes, both Standard & Poor's and the Frank Russell Co. have developed indexes for tracking this...

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