04.06.2009 Opalesque Exclusive: Small cap stocks may be indicator of economic recovery notes long/short manager Midwood Capital (fund +29% YTD)
From Kirsten Bischoff, Opalesque New York:

While ways to verify the much discussed “green shoots” are debated, one indicator may be the performance of small caps, which Chuck Royce CIO and Portfolio manager at Legg Mason recently said “should lead in the early phase of a prolonged recovery in stocks…”

In fact, while small caps leading recovery may be a historic rule of thumb, the Midwo

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