Rallies caused by investors covering short sales, or bets that prices will fall, more typically begin in small-capitalization stocks, he said.

Champions of small-capitalization stocks have been complaining about this focus for some time.

Growth is also beating value among small-capitalization stocks since the end of the first quarter, 13.0 percent versus 10.8 percent.

They also manage about $80 million in small-capitalization stocks, mostly for institutions.

Both sectors have underperformed this year, especially small-capitalization stocks.

For about six weeks now, small-capitalization stocks have been surging.

Q. Are small-capitalization stocks likely to keep moving up?

Steel shares, especially small-capitalization stocks, also helped the rally.

Left out of the rally, however, have been small-capitalization stocks.

Tetra Tech is a small-capitalization stock, and it last traded at $19, down from a high of $23 earlier this year.