Planet MicroCap Podcast | MicroCap Investing Strategies cover image

The Russell Rebalance Effect with Paul Dwyer, Director of Research at Punch & Associates

Planet MicroCap Podcast | MicroCap Investing Strategies

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The Impact of the Russell 2000 Index on the Small Microcap Community

The Russell 2000 index decreased 10% from three trillion to last year's reconstitution of 2.7 million companies. The cutoff is falling about 35%. And so that has, what we're seeing in our portfolio is a lot of companies that got the boot in 2021, 2022 are starting to get added again. But as you know, you can't sit on your own hands and just optimize performance sometimes. A bunch of percent could be better than nothing.

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