Article: Small-cap stocks in rally mode.(News)

Byline: Frederick P. Gabriel Jr.

Small may be beautiful in the current stock market rally.

The average small-cap fund tracked by Lipper Inc. climbed 2.44% in the one-week period through July 10, well above the 0.63% return posted by the average large-cap fund.

The feat marked the first time since Nov. 27, 2002, that small-caps outperformed large-caps by more than 1.8 percentage points.

It also marked the 10th time in 14 weeks that small-caps funds emerged victorious over their large-cap brethren. (Large-caps enjoyed a slight edge over the one-week period ended last Thursday, declining 0.70% compared with a 1.85% drop for small caps.)

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