When investors have the willingness to take short term positions
and the ability to bear a certain degree of risk, small-cap funds
could be the correct choice. These funds generate significant
demand driven sales during a market upswing, which lead to an
increase in their prices. Smaller firms also look to continuously
reinvest their profits back into their business. This reassures
shareholders of superior performance and higher profit potential
from such companies. Small Cap funds therefore make excellent
additions to a well-diversified portfolio.
Below we will share with you 5 top rated small-cap mutual funds.
Each has earned a Zacks #1 Rank (Strong Buy) as we expect these
mutual funds to outperform their peers in the future. To view the
Zacks Rank and past performance of all small-cap funds, investors
can
click here
to see the complete list of funds.
Frost Small Cap Equity A
(
FAHMX
) seeks maximum total return. The fund invests a large share of its
assets in small cap companies. It aims to purchase equity
securities which are attractively priced relative to the underlying
value of the firm. This small-cap mutual fund has a three year
annualized return of 9.67%.
The fund manager is Andrew P. Baumbusch and he has managed this
small-cap mutual fund since 2010.
Queens Road Small Cap Value
(
QRSVX
) invests the majority of its assets in equity securities of small
cap companies. These firms must have a market capitalization not
exceeding $2 billion. The fund focuses on acquiring securities of
companies with strong financial positions and experienced
management teams. This small-cap mutual fund has a three year
annualized return of 8.02%.
As of July 2012, this small-cap mutual fund held 61 issues, with
24.48% of its total assets invested in Invesco Short Term Inv STIC
Prime Instl.
Nuveen NWQ Small Cap Value A
(
NSCAX
) seeks capital growth over the long term. The fund invests a large
share of its assets in companies whose market capitalizations are
similar to those included in the Russell 2000 Value Index or the
Standard & Poor's SmallCap 600 Index. This small-cap mutual
fund has a three year annualized return of 17.78%.
The small-cap mutual fund has an expense ratio of 1.43% compared
to a category average of 1.35%.
Legg Mason ClearBridge Small Cap Growth A
(
SASMX
) invests a large share of its net assets in small cap companies
and related instruments. The fund concentrates on investing in
small domestic companies which focus on delivering growth. This
small-cap mutual fund has a three year annualized return of
17.73%.
The fund manager is Aram E. Green and he has managed this
small-cap mutual fund since 2007.
Longleaf Partners Small-Cap
(
LLSCX
) seeks long-term capital appreciation by investing in small-cap
companies. Equity securities, including related convertible
securities constitute the fund's major investments. A maximum of
30% of its assets may be used to purchase foreign securities,
including those issued from emerging markets. This small-cap mutual
fund has a three year annualized return of 18.74%.
The small-cap mutual fund has an expense ratio of 0.92% compared
to a category average of 1.28%.
To view the Zacks Rank and past performance of all small-cap
mutual funds, investors can
click here
to see the complete list of funds.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find
funds that not only outpaced the market in the past but are also
expected to outperform going forward. Learn more about the
Zacks Mutual Fund Rank
.
View All Zacks #1 Ranked Mutual Funds
(FAHMX): ETF Research Reports
(LLSCX): ETF Research Reports
(NSCAX): ETF Research Reports
(QRSVX): ETF Research Reports
(SASMX): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment
Research