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This page is intended for US prospects, clients and investors only and includes information about the capabilities, staffing and history of Robeco Institutional Asset Management US, Inc. (RIAM US) and its participating affiliates, which may include information on strategies not available in the US. US Securities and Exchange Commission (SEC) regulations are applicable only to clients, prospects and investors of RIAM US. Robeco BV, Robeco HK and Robeco SH are considered a “participating affiliate” of RIAM US and some of their employees are “associated persons” of RIAM US as per relevant SEC no-action guidance. Employees identified as access persons or associated persons of RIAM US perform activities directly or indirectly related to the investment advisory services provided by RIAM US. In those situations, these individuals are deemed to be acting on behalf of RIAM, a US SEC registered investment adviser. RIAM US’s SEC registration should not be viewed as an endorsement or approval of RIAM US by the SEC. RIAM US maintains its offices at 230 Park Avenue, New York, NY 10169.
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Quantitative investing
Size factor
Stocks with a lower market value (mid and small caps) realize higher returns than those with a higher market value or capitalization (large caps).
In academic circles the discussion focuses on whether the better expected performance of companies with a lower market value is only compensation for the higher degree of risk.
Another point of discussion concerns the transaction costs that accompany a strategy based on this factor. These costs are higher for equities with a lower market value due to the reduced liquidity.
Robeco implicitely uses the Size factor by including mid and small cap stocks in its investable universe.
