3 / 5 Stars
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Zacks Investment Research
Standard & Poor's
2 / 5 Stars
#101 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 25.26 percent over the past year, 14.01 percent over the past three years, 24.63 percent over the past five years, and 9.29 percent over the past decade.
|Trailing Returns||Updated 01.31.2014|
|Year to date||-1.2%|
|3 Years (Annualized)||14.0%|
|5 Years (Annualized)||24.6%|
|10 Years (Annualized)||9.3%|
Eagle Small Cap Growth continues to sink its talons into one of the market's best-performing sectors.
As of February 05, 2014, the fund has assets totaling almost $4.03 billion invested in 103 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 35 percent return more than 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 19 percent of its stock portfolio invested in the software sector, and a number of those companies had blockbuster years. Take, for instance, Rovi Corporation, a digital entertainment company that returned roughly 94 percent. The fund's recent success is a tribute to management's research skills. In the small-cap universe, there is always a tangled maze of prospects, and this fund has been doing a great job separating the winners from the losers. One of the bigger changes to affect this fund in recent years occurred in 2008, when co-managers Jack McPherson and David Adams left. McPherson and Adams are value investors. Their presence had moderated the fund's style, and their departure cemented its destiny as a pure growth product. The fund has returned 25.26 percent over the past year and 14.01 percent over the past three years.
Historically, the fund has been a steady performer. While the opening decade of the new millennium was largely flat for large-cap investors, those who focused on smaller companies had better luck. Notably, in the 2000s, this fund beat the S&P 500 every single year except for one. As of the end of 2010, the fund's trailing 10-year returns beat those of the broader market by a whopping 6.7 percent per year. The fund has returned 24.63 percent over the past five years and 9.29 percent over the past decade.
According to the fund's prospectus: "When making its investment decisions, the portfolio manager generally focuses on investing in the securities of companies that the portfolio manager believes have accelerating earnings growth rates, reasonable valuations (typically with a price-to-earnings ratio of no more than the earnings growth rate), strong management that participates in the ownership of the company, reasonable debt levels and/or a high or expanding return on equity. The fund will sell securities when they no longer meet [management's] investment criteria."
Role in Portfolio
Morningstar calls the fund a "supporting player."
Bert Boksen and Eric Mintz manage the fund.
Eagle Small Cap Growth Fund has an expense ratio of 1.10 percent.
Like all stock funds, this one comes with some risks.