I am evaluating funds to seek a good micro-cap. Some of the funds have so little assets under management that it is difficult in finding good information. The following funds have good returns but I would like to know the experience of others in their search and purchase of micro-cap funds.
prinx
Symbol Fund Name 1 Wk 13 Wk YTD 1 Yr 3 Yr (Annualized) 5 Yr (Annualized) 10 Yr (Annualized)
BUFOX Buffalo:Emerging Opps -0.43% 21.66% 31.10% 46.35% 28.80% 17.01% --
FVRMX Franklin Val:Mic Cp;Ad 0.26% 10.49% 23.05% 37.55% 19.56% 12.07% --
MMEAX Munder:Micro-Cap Eq;A -0.80% 14.68% 27.37% 41.87% 23.87% 12.60% 9.69%
HUSIX Huber Cap SC Val;Inv 0.93% 10.55% 22.21% 42.08% 25.38% 17.48% --
MRSCX BMO:Sm-Cap Growth;Y -0.31% 11.60% 25.81% 42.55% 20.13% 12.51% 12.66%
Comments
Lead manager since 2007.
Top 2% for 1,3 and 5 years in it's category.
Art
Regards,
Ted
Seeking Alpha: http://seekingalpha.com/article/400581-the-best-micro-cap-funds
U.S. News: http://money.usnews.com/funds/etfs/rankings/micro-cap-funds
M*:: http://www.morningstar.com/invest/categories/microcap-funds
I continue to like and own WEIMX, which has the most attractive risk/reward profile by my analysis. This fund is available in Scottrade retirement accounts for a low minimum of $250 with a transaction fee. If you want a high-octane fund, you may want to consider AUMIX, which is available in TDA retirement accounts with no minimum plus a transaction fee. BRSIX and BUFOX are also solid choices.
Kevin
M* says 5* small-cap growth/value blend, 1.25% ER, 24.2% ytd.
Link to Schwab data page
Note: ytd on Schwab info is to 6/30, current is 24.2 according to M*.
OJ
Pinnacle Value (PVFIX): as close to a balanced microcap fund as you'll find, Mr. Deysher is an absolute-value investor who rarely finds sufficiently compelling values so the fund is sitting at 40% cash. A combination of highly selective stock picking and cash gives Pnnacle the highest Sharpe ratio, lowest standard deviation (by far) and best bear market rating of any microcap fund. It has strong absolute returns (9.2% over 10 years) but weaker relative ones. It has few investors ($60M AUM), presumably because investors are more apt to buy the fantasy of high past returns than the reality of manageable risk. We've profiled it.
Buffalo Emerging Opportunities (BUFOX): five stars, $157 million, top percentile returns for one, three and five years
Aegis Value (AVALX): fully-invested microcap, crated in 2008, soared since then. We've profiled it, with dismissive comments about its perennial two-star rating. That is, my argument is that you really need to look past its two-star rating.
I would seriously consider Grandeur Peak Global Reach, which we'll profile in August. Global Opportunities, which invests in the same universe, has the lowest market cap of any global fund and great returns. Global Reach will have a more diverse portfolio: a bunch of 20 bps positions in firms that might grow 10-fold.
As ever,
David
The suggestions in this thread are good, but my bigger question is whether there is any real value in specifically holding this asset class. The fees are high, the stocks are volatile, and the overall correlation/returns do not seem to be significantly different from small-cap funds in general.
Alternatively, instead of a pure microcap fund, there are a quite a few small cap funds that also have micro-cap stocks as a significant portion of their holdings.
SATMX was not mentioned despite having higher expenses. Also OBMCX has done well this year compared to years past.
I doubt we really "need" these things. If we really did, history indicates again and again, we go with an index. That is, if we are REALLY looking to diversify portfolio across a certain capitalization spectrum.
Personally - and as I have stated many times before - if I'm going to trust active management I want someone who dabbles in a certain area of the market and let him/her decide where to invest.
My recommendation for you is PVFIX. Mr. Snowball suggested same, but it needs to be noted PVFIX is NOT marketed as a micro cap fund. Which is my point.
As an aside, please note the 1%/1yr early redemption fee on PVFIX
Best.
Art