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Hi, Jackson here, the audio producer for the Baron Streetwise Podcast.

This week, we're revisiting an episode that aired in December on small cap stocks that

continues to be relevant today. We spoke with Jill Kerry Hall at B of A Securities and

Quay Nguyen at Research Affiliates, and they both said small cap stocks are poised to outperform

large cap stocks over the next decade by a lot. For the next 10 years B of A sees 12% yearly

returns for small caps, which is five points more than it sees for large caps.

Though all note here that since this episode was published, large caps have continued the trend

of outperforming small caps. The S&P 500 index is down about 3% since then, while the small cap

S&P 600 is down about 6%, and the small cap Russell 2000 is down 9%. Still, just last week,

Jill from B of A Securities wrote that history suggests small caps could outperform large caps

by 4 percentage points over the next 10 years. Within small caps, energy, financials, and real estate,

screen broadly is the most undervalued versus history. We'll be back next week with a regular

episode. The small caps right now are trading at what we view as a very attractive historic

opportunity for valuations, both on an absolute basis and on a relative basis versus large caps.

Hello and welcome to the Baron Streetwise Podcast. I'm Jack Howe, and the voice she just heard

that's Jill Carey Hall. She's the head of small and mid cap strategies at B of A Securities,

and she says that at the moment shares of small companies are poised to outperform,

and Jill is not alone in that view. Coming up, we'll examine the case for small caps,

...