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Virtus KAR Small-Mid Cap Growth Fund in registration
Curiously, I ran across this family in looking at SCG funds that market themselves as value funds. That came up in another thread.
Comparing Virtus KAR Small-Cap Value Fund's (PQSAX) prospectus with this one shows how worthless stated strategies often are. These two are cut from the same boilerplate. Below are the lead paragraphs in their respective Principal Investment Strategies section.
The main difference is only in market cap (small/mid vs. small). Both this "growth" fund and the other "value" fund say they invest in companies believed to be "undervalued" relative to their "growth" potential. I've tried to highlight the market cap differences between the two funds.
Small-Mid Cap Growth Fund The fund seeks long-term capital appreciation by investing in small- and mid-capitalization stocks with lower overall risk characteristics. The fund invests in a select group of small- and mid-market capitalization companies believed to be undervalued relative to their future growth potential. The investment strategy emphasizes companies the subadviser believes to have a sustainable competitive advantage, strong management and low financial risk and to be able to grow over market cycles. Although the fund invests primarily in U.S. companies, it may invest in foreign securities and American Depositary Receipts.
Small-Cap Value Fund The fund pursues long-term capital appreciation in the small market capitalization sector while seeking to incur less risk than the small capitalization value market. The fund invests in a select group of small market capitalization believed by the fund’s subadviser to be undervalued relative to their future growth potential. The investment strategy emphasizes companies the subadviser believes to have a sustainable competitive advantage, strong management and low financial risk and to be able to grow over market cycles. Although the fund invests primarily in U.S. companies, it may invest in foreign securities and depositary receipts.companies.
Comments
Comparing Virtus KAR Small-Cap Value Fund's (PQSAX) prospectus with this one shows how worthless stated strategies often are. These two are cut from the same boilerplate. Below are the lead paragraphs in their respective Principal Investment Strategies section.
The main difference is only in market cap (small/mid vs. small). Both this "growth" fund and the other "value" fund say they invest in companies believed to be "undervalued" relative to their "growth" potential. I've tried to highlight the market cap differences between the two funds.
Small-Mid Cap Growth Fund
The fund seeks long-term capital appreciation by investing in small- and mid-capitalization stocks with lower overall risk characteristics. The fund invests in a select group of small- and mid-market capitalization companies believed to be undervalued relative to their future growth potential. The investment strategy emphasizes companies the subadviser believes to have a sustainable competitive advantage, strong management and low financial risk and to be able to grow over market cycles. Although the fund invests primarily in U.S. companies, it may invest in foreign securities and American Depositary Receipts.
Small-Cap Value Fund
The fund pursues long-term capital appreciation in the small market capitalization sector while seeking to incur less risk than the small capitalization value market. The fund invests in a select group of small market capitalization believed by the fund’s subadviser to be undervalued relative to their future growth potential. The investment strategy emphasizes companies the subadviser believes to have a sustainable competitive advantage, strong management and low financial risk and to be able to grow over market cycles. Although the fund invests primarily in U.S. companies, it may invest in foreign securities and depositary receipts.companies.
Small Cap Value prospectus (and prospectus for the family's other funds):
https://www.sec.gov/Archives/edgar/data/34273/000110465920006713/tv536302_485bpos.htm