Indeed, the list of the worst performers in the fourth quarter reads like a who's who of value investing. But a dearth of tech issues wasn't the only problem. Several big blowups also took their toll. So ended another rough year for value. Despite its brief comeback in the second quarter, growth funds solidly trounced their value counterparts.
Growth holds a significant edge over the three-year period as well.
But that wasn't the only story. In 1998, small-cap funds of all stripes couldn't buy a break. In 1999, however, the widespread tech rally offered plenty of opportunities for small-cap managers of the growth persuasion to shine. Sarah Bush is an editorial analyst for Morningstar. By accessing and using this page you agree to these Terms and Conditions.