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Media Talk

Stick With What’s Working: Mid Cap and Large Cap Growth

There are no changes to the recommendations from Northlake’s Market Cap and Style models for March.  Mid Cap and Large Cap Growth remain the favored themes.  As a result, client positions held in the S&P 400 Mid Cap (MDY) and the Russell 1000 Growth (IWD) will be held at least another month.

There was a little movement in the underlying indicators driving each model but overall the signals remain of similar strength to last month.  Mid Cap and Large Cap Growth are pretty firmly established and can be considered strong signals that are unlikely shift for at least one month barring a major shift in economic data or stock and bond market performance.

The models performed well last month led by the Large Cap Growth signal, which gained about 6.5%, ahead of the 5.5% rise in the S&P 500.  Growth outperformed value across all market cap ranges as well.  We continue to be encouraged by recent performance of the models.  The current signals using the updated model inputs and structure have both been accurate.

MDY and IWF are widely held by clients of Northlake Capital Management, LLC, including in Steve Birenberg’s personal accounts.  Steve is sole proprietor of Northlake, a registered investment advisor.  Northlake’s regulatory filings can be found at www.sec.gov.

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