Where Real Performance Resides (Hint: It’s Not In US Small Caps)

09/17/14 01:19PM EDT

With the Russell 2000 down -1.2% year-to-date, it’s been a lot easier for small and mid-cap growth investors to stay with long China, India, and Indonesia. They were all up again overnight to +5.7%, +29.7%, and +23.9% year-to-date, respectively.

That’s where the real performance is.

It’s also why you continue to see a higher “International Equities” allocation in our asset allocation model than USA. (Hedgeye macro analyst Darius Dale wrote a related note recently detailing our high conviction. Click here to read.)

Where Real Performance Resides (Hint: It’s Not In US Small Caps) - Russell vs. Asia

Editor's note: This is an excerpt from Hedgeye research.

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