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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.

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Small Cap Thoughts

One of my favorite SC managers, Jeff James of Driehaus recently posted this commentary on why SC stocks may not have earnings. I found it very instructive. I own DVSMX and DSMDX. I note a similarity with how the managers of BCSIX and BCSVX describe how they pick innovative companies, a process that results in an overload in tech and healthcare.

My bias is toward small MF companies, small funds, and managers who explain well what they do. I had to wonder about my biases in the face of what one of Old_Skeet’s global SC choices, SMCWX, has accomplished in its lifetime. How 17 or 18 managers, running $49B, among a slew of share classes, arrive at just about the same result as one of Grandeur Peak’s best offerings, GPGOX, defies my best thinking. At least I admit that I have biases, but the facts are hard to argue with.


  • edited July 2020
    Hi @BenWP,

    I more or less have to use SMCWX if I want to do a nav transfer from one American Fund to another as SMCWX is their only small/mid cap offering which I hold in my global growth sleeve with two other American Funds ANWPX & NEWFX. With this, I hold some other small/mid cap funds in my small/mid cap sleeve which is also found in the growth area of my portfolio. The funds currently held in this sleeve are AOFAX, FKASX & PMDAX and I hold another (multi cap fund) KAUAX in my large/mid cap sleeve.

    Both FKASX and KAUAX were offered by the Kaufmann Funds Group which are now owned by Federated Investors. I first became aware of the Kaufmann funds from Mutual Fund Magazine which was a print magazine (years back) that is no longer in publication. I have owned both these two Kaufmann funds off and on through the years and currently hold positions in both of them by doing nav transfers between them and another Federated fund which I own (SVAAX) for its equity income gereration.

    Another small mid cap fund that I find interestering (and also own) is LPEFX. It has a global perspective and holds a good percentage in public listed and traded companies that have placements in companies that (for the most part) are not listed or traded on the exchanges. Very simlar to a busineess development type company of which it owns some of these as well.

    It is interesting that SMCWX has had the performance that it has had based upon it's size. I generally look for a small cap fund that is small in size as it can be more nimble than it's larger counterparts.

    Just goes to show ... There is more than one trail to the top of the mountain. For me, that is what makes investing so great as there is more than one way to find succeess (and failure) in investing.

    By the way, SMCWX is a core holding for me.


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