Small-cap funds are not likely to extend their streak of big gains, Sam Mamudi writes in Tuesday's Wall Street Journal Fund Track. From March though Friday last week, small-cap funds were up 67.1 percent on average, compared with 60.8 percent gain for mid-cap funds and 52 percent for large caps.
But observers say those big small-cap gains may not last, pointing out that the economy remains wounded, bank lending continues to be restrictive and valuations among small-cap stocks are high. There's room to rise, but the increase won't be as huge.
Among those quoted in the article are Sam Dedio
, who runs Artio US Small Cap Fund, Lipper senior analyst Tom Roseen
and Standard & Poor's Equity Research chief investment strategist Sam Stovall
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