LKCM Small Cap Equity Fund

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

#64 in Small Growth

U.S. News evaluated 213 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 3.93 percent over the past year, 12.23 percent over the past three years, 6.77 percent over the past five years, and 10.58 percent over the past decade. 

Trailing Returns Updated 04.30.2013
Year to date 5.3%
1 Year 3.9%
3 Years (Annualized) 12.2%
5 Years (Annualized) 6.8%
10 Years (Annualized) 10.6%

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Summary

LKCM Small Cap Equity is a diversified, steady fund that offers exposure to a popular segment of the market.

As of May 03, 2013, the fund has assets totaling almost $915.86 million invested in 93 different holdings. Its portfolio consists primarily of shares of small companies.

Lately, this fund had been putting together some strong numbers. Through the end of April, the fund was up a respectable 16 percent year-to-date, thanks in part to its exposure to Carbo Ceramics and MicroStrategy. That follows up solid performance in both 2009 and 2010. In each year, the fund returned upwards of 30 percent. Recently, the fund initiated a position in Lawson Software, a Minnesota-based company that develops enterprise resource planning software. The fund has returned 3.93 percent over the past year and 12.23 percent over the past three years. 

Overall, this fund is a fairly tame, straightforward offering. With nearly 100 holdings, it is broadly diversified. It has rarely had any breakout years, but, despite the occasional disappointing stretch, it has for the most part been rather steady. And, since it invests more heavily in small caps and depends less on mid caps than many of its peers, it provides investors with strong exposure to a popular segment of the market. In other words, for long-term investors looking for a relatively smooth small-cap experience, this fund has potential. This is supported by its trailing 10-year returns, which, as of the end of the first quarter, landed it in the top 8 percent of its Morningstar category. The fund has returned 6.77 percent over the past five years and 10.58 percent over the past decade. 

Investment Strategy

According to the fund's prospectus: "The Fund seeks to invest in the equity securities of high quality companies that exhibit certain qualities, including high profitability, strong balance sheets, competitive advantages, high and/or improving financial returns, free cash flow and reinvestment opportunities, and prominent market share positions."

Role in Portfolio

Morningstar calls the fund a "supporting player."

Management

A team of four managers runs the fund.  

Fees

LKCM Small Cap Equity Fund has an expense ratio of 0.94 percent.

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Risk

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

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