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MikeW said:Bringing this discussion back up for everyone. I would really value hearing what everyone's favorite small cap funds are. WAMCX was my primary holding in small cap for several years but it got crushed in the market selloff over the last year. I've been reading up on NEAGX which @BenWP kindly suggested. All suggestions are welcome. I've been pretty much out of small cap for about a year now and looking to add back in. Thanks gang!
Bringing this discussion back up for everyone. I would really value hearing what everyone's favorite small cap funds are. WAMCX was my primary holding in small cap for several years but it got crushed in the market selloff over the last year. I've been reading up on NEAGX which @BenWP kindly suggested. All suggestions are welcome. I've been pretty much out of small cap for about a year now and looking to add back in. Thanks gang!
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Running MFO premium for CSMCX FCPGX MSSGX WAMCX and NEAGX and it’s clear that MFO also dropped my two funds to a 1 and 2 rating in 1 year performance. Side Note: Wouldn’t it be great to have MFO alert you when a fund in your watch list or port dropped in overall rating? Valueline did that. Would it be in time or advantageous?
The rating drop was deserved based on this years performance. Sure. These two funds have highest risk in 1 and 3 year as well. 10 yr performance, MFO still doesn’t like MSSGX in terms of overall rating. It’s rated a 2 for 10 yr. I don’t recall that when I first evaluated. 20 year it’s a 5. FWIW: M* ratings based on past performance remain unchanged 5*.
NEAGX is rated 5 for all periods. Wondering why this fund didn’t make my screening process. I’m still reviewing this.
While I’m deciding whether to stay or make a change with these two funds, I’m equally as interested in learning how to better evaluate an exit or change. Not a momentum trader. “Consistent Underperformance” is somewhat subjective, no? Is that 1 year or 2 years if there’s been no change to mgmt or underlying fund strategy change. It could be what @BenWP said… just some bad choices in high flying small caps. What makes me confident that they will correct?
Pro Tip for MFO Discussion Search: Use oldest share class symbol and you're likely to turn up more meaningful results.
I'm probably different than most on this board but I'd say pick your horse and jockey and ride it. If your jockey (manager) consistently beats an index fund, say VBK, or is in most years a top 20% performer in the category, you've done great. Don't second guess a well thought out choice because your likely to second guess that choice in a couple years too.
Just my humble 2-cents.
I know it ain’t play money, but for me it’s a hobby whose satisfaction involves trying to pick the best in class. I slave over my old sports car; not so much to get more return in the event of a sale, but to hear knowledgeable people make positive comments.
In my 401k I an also overwight smid's since there is also scuttlebut in respectable corners that large caps are over-valued and that there is less risk currently in smaller and mid-sized companies. Oakmark, Tweedy, D&C and other value-conscious shops seem to have moved more into smids during 2020 and early 2021 (but have rotated out since). I counter the smid overweight by holding a bit more cash, such that the simple weighted expected return is above that of holding larger caps.
Does that mean you plan to stay out of all SCG this year?
Major indexes from 6/16/22 https://stockcharts.com/h-perf/ui?s=$SPX&compare=$COMPQ,$INDU,$TRAN,IWM&id=p16477435900
The fund's benchmark is the S&P 600 and its holdings are very similar to the index.
VTMSX managers strive to improve tax efficiency for the fund.
FWIW, I hold GPGOX on the global growth side and QRSVX for the sleep easy value side. Long time good management for both overall.
I have some of the more generic index funds that I plan to ditch when the time is right.
A few you might want to check-out:
For now the only small cap fund we invested in is T. Rowe Price Mid-cap value, TRMCX. The long time manager, David Wallack, retired in mid-2021, and replaced with two new associates. Wallack’s investment process remains intact as the fund out-performed the respective mid-cap value index especially during the drawdown in May 2022. The other small cap value fund, QRSVX, we had earlier is okay too, but the lack of a deep bench was a concern whereas T. Rowe Price is in a better position. We are keeping a small allocation, 2-3%, per our risk tolerance at this time.