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Looking for advice on small-cap funds

Whakamole
in Fund Discussions
My portfolio is quite low on small-caps (and mid-caps to a lesser extent), and I'm thinking it's time to invest in a quality small cap fund.

I have a Fidelity 401k account, as well as an HSA. I'll list the HSA funds to help narrow it down a bit.

Delaware Small-cap Value: DEVLX
Schwab Small Cap Stock Index: SWSSX
Janus Triton: JGMAX
Robeco Small Cap Value II: BPSCX
Pimco Small Cap StocksPlus: PCKAX
Royce Dividend Value: RYDVX
Transamerica Small/Mid cap Value: IIVAX
Legg Mason ClearBridge Small Cap Growth: SASMX

Of course I'm leaning towards the Schwab index fund, though the Pimco fund has better returns at the price of a much higher expense ratio. Much of the rest seems to be average performance for higher expenses, but I'm listing them for sake of posterity.

Any suggestions for my HSA (and perhaps what would be a nice NTF for my Fidelity 401k)?

Comments

  • TedTed
    @Whakamole: For you to review. Hope this is of some help, and don't stay away so long.
    Regards,
    Ted
    Small Growth:
    http://money.usnews.com/funds/mutual-funds/rankings/small-growth?int=9c0d08

    Small Value:
    http://money.usnews.com/funds/mutual-funds/rankings/small-value?int=9c0d08

    Small Blend:
    http://money.usnews.com/funds/mutual-funds/rankings/small-blend
  • LLJB
    If we believe the rumors then Grandeur Peak will have a US focused small cap fund sometime this year. If you're able to get into that I'd guess it'd be NTF at Fidelity. Just don't really know when it might appear.
  • Whakamole
    I'll try not to, Ted! It's been a while.
  • JohnChisum
    Nice ER on that Schwab fund.
  • Whakamole
    That's what I am thinking. Always prefer low-cost funds unless the people running the fund are brilliant, but not too many cases of that.
  • davidrmorandavidrmoran
    My experience is this is another area for active management, not indexing. Fido has some excellent sc funds. Discovery and one or two others. I myself favor, in addition, GABSX and WEMMX. Gabelli would probably be the chief person to call himself brilliant, but he does outperform, and is prudent. FLPSX is not small-cap, but well worth having in your 401k if you do not already.
  • PRESSmUPPRESSmUP
    Whakamole....here is a thread from a year ago which may help to address your question. I had bookmarked this at the time, as I had a similar question as yours. It's interesting to take a look at the recommendations, and the performance of the funds.

    http://www.mutualfundobserver.com/discuss/discussion/5469/small-and-mid-cap-fund-recommendations/p1

    For what it's worth....I chose SCMFX.
  • Whakamole
    edited January 2015
    Any thoughts on PCFDX? I'm a little shy of throwing more money into the PIMCO pot, but it looks like a well-managed fund so far.
  • David_Snowball
    edited January 2015
    Hi, Whak.

    Meridian Growth (MERDX) and Mairs & Power Small Cap (MSCFX) are among Charles's small cap Great Owls. Meridian Small Cap Growth, run by the guys who managed Janus Triton to a brilliant record, has also taken off like a rocket. Admittedly the fee structure is a bit dodgy.

    If you could imagine the notion of a small cap balanced fund, you might consider Pinnacle Value (PVFIX) which is 50% cash. John's been running the fund for a long while and somehow manages perfectly respectable absolute returns when the market's rising and predictably excellent ones when the market's falling. Every time it trails 95-99% of its peers, it also manages double-digit returns.

    Curious, as ever,

    David
  • ET91
    David, According to morningstar, MERDX is closed. Is that true?
  • David_Snowball
    Nah. Try MRAGX. Meridian now has four illogical share classes, including the closed Legacy class (MERDX). Expenses and minimums vary.

    David
  • davidrmorandavidrmoran
    >> Meridian Growth (MERDX) [is] among Charles's small cap Great Owls. Meridian Small Cap Growth, run by the guys who managed Janus Triton to a brilliant record, has also taken off like a rocket.

    If you want to see what 'like a rocket' actually means, check the performance of MRAGX, WEMMX, GABSX, and Janus Triton (JGMAX.lw) from 9/5/13, when the brand-new owls took over Meridian, to today. You will see that the Triton fund they departed from has outperformed them even more than they have outperformed Gabelli's two. What does this tell us? Inasmuch as 'owl' connotes wisdom and the long patient view, or something, these ones are short-flight thus far, maybe holding their own.
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