Deflation seems to be all the rage these days, so it is probably appropriate that small-cap stocks took a breather in April after a big up month in March. Returns were mixed; the S&P 500 index’s total return was up 1.0%.
The Model Fund Portfolio was up for the month by 0.5%, while the Model Shadow Stock Portfolio, which invests in micro-cap value stocks, was down 0.8%.
The Model Shadow Stock Portfolio’s 0.8% decline for April, coming off of a big March, handily beat both of its comparison benchmarks: The Vanguard Small Cap Index fund (NAESX) lost 1.7% and the DFA US Micro Cap Index fund (DFSCX) lost 2.0% in April. Year to date, the Model Shadow Stock Portfolio has gained 4.7%, while the NAESX is up 3.0% and the DFSCX is up 1.1% over the same time period. Since its inception in 1993, the Model Shadow Stock Portfolio has a compound annual average return of 16.9%, while the Vanguard Total Stock Market Index fund (VTSMX) has gained 9.3% annually over the same period.