Century Small Cap Select Fund

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

#81 in Small Growth

U.S. News evaluated 219 Small Growth 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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Performance

The fund has returned 22.87 percent over the past year, 11.33 percent over the past three years, 19.95 percent over the past five years, and 7.51 percent over the past decade. 

Trailing Returns Updated 06.30.2014
Year to date 0.9%
1 Year 22.9%
3 Years (Annualized) 11.3%
5 Years (Annualized) 19.9%
10 Years (Annualized) 7.5%

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Summary

Patient investors in Century Small Cap Select have been rewarded handsomely.

As of July 03, 2014, the fund has assets totaling almost $422.54 million invested in 63 different holdings. Its portfolio consists primarily of shares of small-cap companies.

For small-growth funds, 2010 was a banner year. This fund was no exception, and its 31 percent return roughly doubled the S&P 500's growth. In 2010, technology picks were largely responsible for the fund's success. As of the end of the third quarter, the fund had upwards of 20 percent of its stock portfolio invested in the software sector, and a number of those companies had blockbuster years. Take, for instance, Informatica Corporation, a data integration company that returned roughly 70 percent. The fund has kept up its solid performance this year. Through the end of the first quarter, its returns landed it in the top 13 percent of Morningstar's small-growth category. Were it not for poor performance by healthcare picks Par Pharmaceutical Companies and NxStage Medical, that number would be even more impressive. The fund has returned 22.87 percent over the past year and 11.33 percent over the past three years. 

Historically, the fund has been a steady performer. Says Morningstar: "Despite the inherent volatility in small caps, this offering makes a unique proposition for investors seeking small companies without the thrill ride that often comes with the territory." As a result, despite frequent finishes in the bottom half of its Morningstar category, the fund has over time managed to build a stellar track record for investors who have been willing to be patient. Apart from caution, management's style is also defined by a willingness to dip down into the market cap spectrum. As of the end of 2010, for instance, roughly 20 percent of its portfolio was in companies that Morningstar classifies as micro-caps. The fund has returned 19.95 percent over the past five years and 7.51 percent over the past decade. 

Investment Strategy

Management looks for quality companies in growth-oriented sectors. Management isn't afraid to dip down far into the market-cap spectrum or to actively trade. The fund's turnover ratio, a measure of how frequently management trades, currently sits at 133 percent. By comparison, a fund that replenishes its entire portfolio once a year would have a ratio of 100 percent.

Role in Portfolio

Morningstar calls the fund a "supporting player." 

Management

Kevin Callahan and Alexander Thorndike manage the fund.

Fees

Century Small Cap Select Fund has an expense ratio of 1.12 percent. 

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Risk

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

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