A few months ago, we took advantage of the growing disparity between small and large cap United
States stocks; on a relative basis, small cap performance has been terrible over a one, three, and five year
time frame. Understandably, some people wonder why we would look to increase an asset class that has
performed so badly. Coincidentally, Dimensional Fund Advisors just wrote a white paper that explains some
of the rationale for looking at asset classes on a broader time scale. Thus, we borrowed their research and
explanations for this month’s newsletter.