Goldman Sachs Small Cap Value

Scorecard
3 / 5 Stars
Lipper
4 4 3 2 2
Zacks Investment Research
2 (Buy)
Standard & Poor's
3 / 5 Stars
TheStreet.com
B- (Buy)

U.S. News evaluated 228 Small Blend Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.

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Note: Profile written for different share class.

Performance

The fund has returned 24.27 percent over the past year, 14.28 percent over the past three years, 23.90 percent over the past five years, and 8.85 percent over the past decade.

Trailing Returns Updated 03.31.2014
Year to date 1.7%
1 Year 24.3%
3 Years (Annualized) 14.3%
5 Years (Annualized) 23.9%
10 Years (Annualized) 8.9%

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Summary

This year's roller coaster of a market cycle has been testing Goldman Sachs Small Cap Value's mettle.

As of April 22, 2014, the fund has assets totaling almost $6.04 billion invested in 227 different holdings. Its portfolio consists primarily of shares of small companies. 

During the recession, this fund showed an impressive ability to play defense. In 2008, for instance, the fund beat the broader market by nearly 10 percentage points. This year, the fund has been bleeding in a number of different directions, with its holdings in nearly all sectors, from basic materials to financial services, feeling the pinch. Even so, the fund has managed to stay ahead of the pack. As of August 11, it was down more than 8 percent year-to-date, but that was still good enough to land it in the top 18 percent of Morningstar's small value category. Lately, the fund has been overweight, compared to its Morningstar peers, to real estate companies. The fund has returned 24.27 percent over the past year and 14.28 percent over the past three years. 

Management tends to spread the fund's assets across a large number of companies. During weak markets, this diversification helps keep a lid on losses. But during rallies, it can restrain the fund's performance. Most recently, the fund failed to fully participate in the small-cap rally in 2009. Overall, though, the fund has been a fairly steady performer. The fund has returned 23.90 percent over the past five years and 8.85 percent over the past decade. 

Investment Strategy

According to the fund's prospectus: "The Fund's equity investment process involves: (1) using multiple industry-specific valuation metrics to identify real economic value and company potential in stocks, screened by valuation, profitability and business characteristics; (2) conducting in-depth company research and assessing overall business quality; and (3) buying those securities that a sector portfolio manager recommends, taking into account feedback from the rest of the portfolio management team."

Role in Portfolio

Morningstar calls the fund a "supporting player."

Management

A team of four managers runs the fund.

Fees

Goldman Sachs Small Cap Value has an expense ratio of 2.13 percent.

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Risk

Like all stock funds, this one comes with some risks.

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