Whether it be a case of bullishness or bullheadedness, money managers
say they remain optimistic about large-cap growth, according to a new
survey.
The results of
Russell Investment Group's quarterly money manager poll found that 70%
of managers surveyed are bullish about the prospects of the large-cap
growth sector for the remainder of the year.
The results evidently reflect a feeling among managers that a shift in market momentum is on the horizon.
Those sentiments came at a time when
the Russell 1000 Growth and Russell Top 2000 Growth indexes were the
lowest performing segments of the Russell index family the first two
months of the year.
"To understand the
managers' allegiance to what have been out-of-favor market segments, we
have to consider some historical perspective," says Randy Lert, chief
portfolio strategist with the Russell Investment Group. "Over the past
decade the Russell 2000 Value Index has outperformed the Russell 2000
Growth Index significantly outside of historical norms, and investment
managers believe that such a level of disparity between market segments
may not be sustainable."
Managers had an
overall positive attitude toward the market, with only 8% saying the
market is overvalued. A majority, 67%, feel the market is fairly valued
and 24% feel it is undervalued.
After large-cap
growth, managers were most bullish about midcap growth, which drew a
positive outlook from 63% of managers, and non-U.S. equities, which got
a bullish rating from 57% of managers.
More than 100 managers participated in the survey, according to Russell Investment Group.