PT - JOURNAL ARTICLE AU - Brian R Bruce AU - Daniel Morillo TI - Extreme Investing DP - 2003 Mar 20 TA - Special Issues PG - 21--38 VI - 2003 IP - 1 4099 - https://pm-research.com/content/2003/1/21.short 4100 - https://pm-research.com/content/2003/1/21.full AB - Researchers have looked into valuation effects for decades. Their research has usually focused on large-capitalization stocks. Not as much research has been done on valuations in small-capitalization stocks, as there is a tendency by many to associate small-capitalization stocks with a growth style. Any research that has been done on small-capitalization stocks was usually been confined to the lower deciles of the Center for Research in Security Prices data as this is the data set that academics had easy access to. This article presents valuation research on small-capitalization stocks as defined by the Russell 2000 index, which is the index used by most institutional investors to represent small-capitalization stocks. The results will show that while valuation is still an effective way to manage portfolios, certain characteristics exist at the extremes in the universe of data that make small-capitalization stocks behave differently from large-capitalization stocks.