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
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).
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.
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.
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.