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The best small cap funds

Updated on August 10, 2015

Outstanding fund choices

In times of economic recovery small cap funds tend to outperform larger asset classes. Most investors want the best returns in their portfolio. Stock picking in small cap funds is more critical to getting handsome returns than large cap funds. In the early stages of an economic recovery and even well into the recovery small cap stocks outperform the total market.

I’m a big fan of no load funds. While there are some very good load funds out there you are going to have to get some very good management to overcome the load fee.

In the small cap arena good managers produce great results.

The best small cap funds mean more money for you!

Let you money work for you!
Let you money work for you!

The top rated small cap funds 2015

As I alluded to earlier small cap fund selection can really boost your portfolio’s performance.

My top fund picks for 2015 are as follows:

Brown Advisory Small Cap Value Fund:

I generally do not recommend newer funds however this fund has done very well under an experienced manager. Over the last three years this fund is up almost 22 percent per year. J. David Schuster the fund manager invests in undervalued companies which could be takeover targets. This strategy is one I like to see managers undertake. This fund is available under the fund symbol BAUAX.

Gabelli Small Cap Growth:

If you followed my hubs and blog you will find I have been a fan of Mario Gabelli for years. This fund too is managed by Mr. Gabelli. This fund has cranked out 13.15 percent a year since 1991. It is up 16.7 percent over the last three years and 14.52 over the last five. I like the heavy diversification of this fund. At this time the fund has 586 holdings with O’Reilly Automotive Inc. being the largest holding with only 2.2 percent of the fund’s holdings.

For closed end fund investors Royce Value Trust symbol RVT is hard to beat.

The Wasatch Small Cap Growth symbol WAAEX). I first recommended this fund in 2011. This fund was up over 31 percent in 2010. Jeff Cardon has been the fund manager since 1986. This fund is up 12.43 percent per year since 1986 and is up 17.0 percent over the last five years.

The Gabelli Westwood Mighty Mites Fund Symbol WEMMX. This fund is also run by Mario Gabelli. This is a micro cap fund which invests in companies with a market cap of $300 million or less. This fund is up 10.43 percent per year for 10 years, 14.57 for the last five and 15.83 for the last three. This fund has gone heavily to cash when the market has had few opportunities. I have owned this fund for 15 years and I don’t see selling it anytime soon.

Having the best funds in the small cap arena can have a huge positive impact on your portfolio. Great funds equal great results.

While having the best small cap funds will go a long way towards meeting your financial goals as investor more diversification is highly recommended. Develop your own asset allocation and invest in the best funds in those asset classes. Once the investor has their asset allocation select the best mid cap, large cap, global, bond, and even concentrated portfolio funds for their portfolio.

Regardless if you are investing in your IRA, 401K, 403B or taxable account invest your money wisely. How you invest is equally as important as how much you invest.


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    • parttimeisbul profile image

      parttimeisbul 7 years ago from

      thank you