3 / 5 Stars
2 2 2 4 1
Zacks Investment Research
Standard & Poor's
1 / 5 Stars
U.S. News evaluated 227 Small Blend Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
Note: Profile written for different share class.
The fund has returned 23.26 percent over the past year, 9.44 percent over the past three years, 22.52 percent over the past five years, and 10.11 percent over the past decade.
|Trailing Returns||Updated 02.28.2014|
|Year to date||0.3%|
|3 Years (Annualized)||9.4%|
|5 Years (Annualized)||22.5%|
|10 Years (Annualized)||10.1%|
The Lord Abbett Small-Cap Value fund is a U.S. stock fund that seeks to provide investors with capital appreciation. Despite its name, the fund holds onto many stocks with higher valuations, which are often deemed growth rather than value stocks. Management appears to be more interested in offering investors exposure to broad range of small-cap stocks, rather than the narrower value designation.
As of March 05, 2014, the fund has assets totaling almost $3.10 billion invested in 112 different holdings. Its portfolio consists of small- and mid-cap stocks of public companies domiciled in the United States.
Unlike many value funds, this fund has a history of investing in companies with both low and high valuations, which makes it look more like a fund in the “blend” category. Although the fund has a relatively new manager, Gerard Heffernan, Jr., its strategy of buying what it believes are undervalued stocks with a penchant for growth hasn’t changed. With that said, the fund hasn’t been ranked in the top 20 percent of similar funds in the last two years, as it was from 2004 thorugh 2008. The main difference between this fund and its peers is that it makes large sector bets. Roughly 30 percent of the portfolio is invested in industrial materials companies, for instance, as of the end of 2010. The fund has returned 23.26 percent over the past year and 9.44 percent over the past three years; it has returned 22.52 percent over the past five years and 10.11 percent over the past decade.
Management searches for small-cap, U.S.-based companies that have good growth prospects and which it deems undervalued. The fund tends to hold companies that grow to higher valuations. The fund is meant to provide capital appreciation.
Role in Portfolio
Morningstar says the fund should serve as a supporting player in your portfolio.
Gerard Heffernan, Jr., took over management of the fund in early 2009, following Robert Fetch’s long tenure. Heffernan previously worked with the fund as an analyst. Because the market has rebounded so strongly since Heffernan took over, it’s hard to attribute the fund’s solid performance to him. More time is needed to properly gauge Heffernan’s abilities.
Lord Abbett Small Cap Value Fund has an expense ratio of 1.92 percent.
Small-cap stocks have a tendency to experience more volatility than their larger-cap brethren.