SLY - Small Caps As Responsible Repurchasers
By Jeremy Schwartz, CFA
Research reports on share buybacks (and popular hit jobs in the press) tend to focus on the large-cap segment of the market, but the small-cap story is just as important.
In a recent post, we showed that although buybacks generate much controversy as a form of cash distributions to shareholders, they have unquestionably added value. Over the last decade, shareholder yield as a valuation indicator has outperformed the traditional value sorts of the market (like the price-to-book ratio), which have had very poor returns.
For the S&P 500, adding buybacks to