3 / 5 Stars
4 4 2 4 2
Zacks Investment Research
Standard & Poor's
2 / 5 Stars
#104 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 26.22 percent over the past year, 12.07 percent over the past three years, and 23.95 percent over the past five years.
|Trailing Returns||Updated 01.31.2014|
|Year to date||-3.8%|
|3 Years (Annualized)||12.1%|
|5 Years (Annualized)||23.9%|
|10 Years (Annualized)||10.6%|
For Satuit Capital Micro Cap, no company is too small to invest in. The fund specializes in finding tiny companies with plenty of room to grow.
As of February 05, 2014, the fund has assets totaling almost $209.52 million invested in 99 different holdings. Its portfolio consists primarily of shares of U.S. companies with market capitalizations of less than $500 million.
After a breakout 2009, during which Satuit Capital Micro Cap returned 50 percent, the fund has had a rather tame year so far. Overall, though, calmness is the exception to the rule for this fund, which is prone to big swings--almost always in the right direction. Micro-cap stocks are the smallest ones out there, and they can be quite unpredictable. But when this fund finds successful business models in their nascent stages, the payoff can be tremendous. Take, for instance, TGC Industries, a company that conducts seismic surveys that the fund is invested in. So far this year, the company had returned more than 100 percent. The fund has returned 26.22 percent over the past year and 12.07 percent over the past three years.
Historically, the fund has done a fine job of navigating the micro-cap universe. While plenty of its bets in this relatively untrodden space have fallen flat, this fund's winners have far outnumbered its losers. Management relies on a combination of quantitative and qualitative factors and does a fair amount of trading. A diversified portfolio has helped management insulate itself from the occasional bad pick. The fund has returned 23.95 percent over the past five years.
The fund uses proprietary quantitative models to evaluate companies' growth and value characteristics. Companies are then ranked based on the results of these evaluations. Management will then examine the list and add a qualitative layer to the process. Since micro-cap companies are often startups, management likes to keep in contact with executives at the companies in which it invests. This hands-on approach helps the fund get a feel for business models.
Role in Portfolio
Given the risks associated with investing in micro-cap stocks, this fund should be part of a well-diversified portfolio.
Robert Sullivan has managed the fund since its 2000 inception.
Satuit Capital U.S. Emerging Companies Fund has an expense ratio of 1.90 percent.
Like all stock funds, this one comes with some risks. Additionally, micro-cap stocks can be more volatile than the broader market.