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U.S. Equity Strategy – JEF's SMID-Cap Themes: 8 is Enough, Go with the Momentum and 7 Other Themes

— Stephen DeSanctis, U.S. Equity SMID-Cap Strategist

Jefferies added momentum to the list of preferred SMID-Cap strategy themes. When performing the monthly factor analysis for SMID-Cap equities, the firm found that price momentum was coming back into favor for the group. Specifically, price momentum usually works well for small caps and, seasonally, acts best in 4Q. The preferred momentum factor highlighted was the one month change in the 200DMA. The additional seven SMID-Cap themes are: growth, size, quality, overseas revenue exposure, healthy balance sheet, M&A and active over passive. FULL REPORT