5 / 5 Stars
5 5 3 4 5
Zacks Investment Research
1 (Strong Buy)
Standard & Poor's
4 / 5 Stars
#3 in Small Growth
U.S. News evaluated 215 Small Growth Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
The fund has returned 39.37 percent over the past year, 20.94 percent over the past three years, 27.18 percent over the past five years, and 11.51 percent over the past decade.
|Trailing Returns||Updated 01.31.2014|
|Year to date||-0.4%|
|3 Years (Annualized)||20.9%|
|5 Years (Annualized)||27.2%|
|10 Years (Annualized)||11.5%|
Brown Capital Management Small Company is prone to big swings.
As of February 05, 2014, the fund has assets totaling almost $2.90 billion invested in 40 different holdings. Its portfolio consists primarily of shares of small and midsized companies.
Lately, this fund has been moving in two directions. As of the end of the first quarter, a whopping 55 percent of its portfolio was invested the tech sector. Within that sector, FEI Company and NIC, Inc. have contributed to performance this year. Tech stocks, of course, tend to be aggressive and are often volatile. At the same time, however, management also has, as of the end of the first quarter, a hefty position in healthcare companies, which tend to be defensive picks. This mixed strategy has worked well in 2011. The fund has returned 39.37 percent over the past year and 20.94 percent over the past three years.
Since 2001, this fund has finished three years in the top 10 percent of its Morningstar category. But it's also finished two years in the bottom 10 percent. In six of those years, its returns have diverged from those of the broader market by at least 10 percentage points. One distinguishing characteristic is management's willingness to invest substantially in micro-cap stocks. These tiny companies add to the portfolio's volatility. Meanwhile, management has a pronounced buy-and-hold philosophy, as evidenced by the fund's 7 percent turnover ratio. The fund has returned 27.18 percent over the past five years and 11.51 percent over the past decade.
According to the fund's prospectus: "The Advisor seeks to build a portfolio of exceptional small companies with the wherewithal to become exceptional large companies."
Role in Portfolio
Morningstar calls the fund a "supporting player."
A team of four managers runs the fund.
Brown Capital Management Small Company Fund has an expense ratio of 1.27 percent.
Like all stock funds, this one comes with some risks.