Understanding the January Effect in Equity Investing

As an equity portfolio manager, you are analyzing various market anomalies that can provide opportunities for active equity investing. One well-known anomaly is the "January Effect," which suggests that stock prices, particularly small-cap stocks, tend to increase more in January than in other months.

Your research also highlights other potential anomalies such as the "Value Effect," where undervalued stocks outperform growth stocks, and the "Momentum Effect," where stocks that have performed well in the past continue to do well in the short term.

Considering this context, which of the following statements best describes the January Effect?