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CONSOLIDATE SMALL CAP FUNDS

golub1
in Fund Discussions
I own four excellent small cap funds and I wish to consolIdate my holdings.

I hold FSCRX, WSCVX, VVPSX, GPROX ( a global small cap fund with 67% of it's of it's portfolio in small caps ) as well as FMIMX which has 31% of its portfolio in small caps. All five funds are closed to new investors. The largest of these FMIMX has 1.5 B AUM versus FSCRX at 6 B.

I would like to consolidate my holdings and my instincts is to first get rid of FSCRX because of its size and perhaps 1 to 3 other holdings. However, I've seen other small cap funds continue to be quite successful after accumulating even larger assets. If it morphed into a midcap fund that might be okay. All are in non-taxable accounts except WSCVX.

I do not wish to part with FMIMX since it provides much of my midcap exposure and has the longest record.

I am in my 70's so these are really aggressive holdings for me, but I do not need the income from my accounts to support myself, and presume I would hold onto these holdings during the rest of my lifetime. Will my heirs do likewise? I have my doubts so risk reduction is a concern.

What would you hold onto what would you fold?

Comments

  • expatsp
    edited July 2014
    I too would get rid of FSCRX, because of its size. It's probably not a bad time to dial down on small caps anyway. I hate to pay taxes, but a concern with WSCVX is that its manager is also nearing retirement age (born 1945), so it's probably not one you will want to leave to your heirs, and I think it's pretty similar to VVPSX in its profile. GPROX I don't think overlaps with the others, since it's mostly global.

    So my vote would be to sell FSCRX and, if you can sell something else at a loss to compensate for the capital gains, sell WSCVX too. Otherwise just sell FSCRX and call it a day.

    Or you can just sit tight -- I think consolidation for the sake of consolidation is overrated, and FSCRX, with its low turnover and good downside protection, seems to be managing its size well.

    Congrats on having chosen such good funds!
  • TedTed
    @golub1: Keep WSCVX & FMIMX which will give you all the small and mid-cap exposure you need, , sell the rest.
    Regards,
    Ted
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