RupeeCase
Education . The Size Factor . 2 of 3
Same engine . equal weight . fortnightly . only the size band changes
Walk down the size ladder. The return stalls. The hole deepens.
Universe
CAGR / yr
Worst drop
Sharpe
All capsEverything basket
48.02
22.70
1.77
MidcapRank 101 to 250
41.21
24.87
1.48
SmallcapRank 251 and down
41.03
22.35
1.58
MicrocapThe very bottom
40.56
26.44
1.53
48 vs 40.56
The everything basket beat every pure size bet. Shrinking to the smallest names handed back 7.46 points of return for a deeper hole.
Nifty 50 over the same window did about 10.5 a year at a 16.92 worst drop. The size tiers all beat it. But among themselves, smaller never paid more. Past performance . backtest only . not a guarantee.