In his latest column for Canada’s Globe and Mail, Validea CEO John Reese discusses the merits of investing in small-cap stocks, and looks at a small-cap strategy that has produced exceptional long-term results.

“From 1927 through 2012, one dollar invested in the total U.S. stock market would have grown to just shy of $3,000, according to Index Fund Advisors,” Reese says. “The same dollar invested in a basket of small U.S. stocks? It would have grown to nearly five times as much: $14,580.”

Reese looks at the small-cap strategy he bases on the writings of Tom and David Gardner, the creators of the Motley Fool website. Since it’s mid-2003 inception, a 10-stock portfolio picked using the model has returned more than 15% annualized, nearly tripling the S&P 500. He examines five stocks the model is high on now, including Constellation Software.