By: Mat Lystra, Senior Research Analyst
The Russell 1000 Index of large cap companies and the Russell 2000 index of small cap companies are re-assessed annually with Russell Indexes’ Reconstitution. This year, the dividing line in market capitalization between large and small cap reached $3.2 billion. Although in a broad sense that number might start to redefine what constitutes a small cap company, it is perhaps unremarkable considering last year’s threshold was $3.1 billion. The speed with which we reached these heights, however, is something worth looking at more carefully.