MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Royce thinks that $1.1 Billion is too little an asset base for a micro-cap fund

Heathbob
edited October 2012 in Fund Discussions
Saw the latest Morningstar FundTimes and just chuckle to myself that Royce wants to reopen their Microcap fund. I am glad that I got out of Royce funds a few years back. For some reason they can do no wrong in Morningstar's eyes. Speaking of micro-caps.....a few questions for the board. 1) what asset base should a micro cap fund not exceed (a true microcap fund, and not an indexer either). 2) Does anyone have any favorite micro-cap funds? I have been interested in Wasatch Microcap Value but the 2.25% expense ratio is kind of steep, but it may be worth it because they close their funds before they get too big.

Comments

  • Sven
    That is sheer greed, nothing more..... Years ago I invested in N/I Numeric Microcap fund, which closed shortly when it researched $200 millions. It performed very well until they decided to exit retailed business.

    Personally I like Wasatch Emerging Market Small Cap, WAEMX, even though the expense ratio is on the high side. The other global small cap is Grandeur Peak Global Opportunities Inv (GPGOX).
  • Heathbob
    I do own GPGOX and have been happy with it.....I am looking for a pure micro cap fund as the funds in my small cap allocation are on the higher side of the small cap space. I have been watching BUFOX, but now I think that its time has come and past.....not sure it if can keep up its pace....and probably won't even consider buying until a pull back of the market of some sort. I also have been watching SATMX....high expense ratio, but they are another company that is not afraid to close funds before they get too big.
  • InvestorInvestor
    Reply to @Heathbob:

    Microcap funds typically have very high volatility. The safest time to buy these is after market has declined 25-30% from highs and that requires holding your nose and having courage which is very difficult. Thus I prefer small cap funds that has some exposure to microcaps.
  • TheShadowTheShadow
    edited October 2012
    Reply to @Heathbob:

    Some of the open/closed micro-cap funds I like are: AUMIX, AMCIX, BRSIX, BRUSX, FRMCX, PVFIX, TMCGX, PVFIX, SATMX, WMICX, WAMVX, and WSCVX for more so domestic holdings. I used to own OBMCX, PRCGX, PREOX, TETSX and TMVSX and sold them since they never really performed. I do remember reading many years ago that SATMX was suppose to close when it reached $250M, but it never reached that many AUM.
  • ShostakovichShostakovich
    Hey, let's not forget that Royce's Micro Cap fund is over 25% international stocks. And yet Royce keeps benchmarking it against the US Microcap index.

    Chuck sold his soul. He kept his cashmere sweaters and his bow ties, but he sold his soul. And the devil's name is Legg Mason.
Sign In or Register to comment.