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NBIM Publishes Discussion Note on Small-Firm Effect

9 November 2012

Norges Bank Investment Management (NBIM) has published a discussion note on the small-firm effect (SFE), which describes the average long-term excess returns that a portfolio of small-capitalisation stocks have over a portfolio of large-capitalisation stocks.

The note reviews the extensive empirical evidence of the SFE and various theories to explain the effect. It is part of a series of discussion notes on topics of relevance to the long-term investment strategy of the Government Pension Fund Global.

  

Read the Discussion note (PDF)