3 / 5 Stars
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Zacks Investment Research
Standard & Poor's
3 / 5 Stars
U.S. News evaluated 118 Small Value Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
Note: Profile written for different share class.
The fund has returned 29.38 percent over the past year, 11.40 percent over the past three years, and 23.80 percent over the past five years.
|Trailing Returns||Updated 02.28.2014|
|Year to date||0.6%|
|3 Years (Annualized)||11.4%|
|5 Years (Annualized)||23.8%|
|10 Years (Annualized)||11.2%|
Dreman Contrarian Small Cap Value scours the market for out-of-favor stocks that nevertheless have bright futures.
As of March 05, 2014, the fund has assets totaling almost $135.33 million invested in 129 different holdings. Its portfolio consists of a mix of small- and mid-cap stocks.
Mark Roach, a co-manager of Dreman Contrarian Small Cap Value, likes to describe the companies the fund owns as "straw hats in the winter." These businesses, which he also refers to as "fallen angels," have solid models but are temporarily out of favor. "We're contrarian investors. We look for those stocks that have been overreacted to by Wall Street and by other investors," he says. That approach paid off well in 2008 and 2009. In 2008, for instance, the fund beat the S&P 500 by upwards of 8 percentage points. That's no small feat for a small-cap fund in a weak market. In 2009, the fund participated fully in the small-cap rally, gaining upwards of 34 percent.
Despite the word "value" in the fund's name, Morningstar classifies it as a small-blend fund. Recently, the fund has underperformed somewhat. In 2010, it finished near the bottom of its category but still returned about 20 pecent. The fund has returned 29.38 percent over the past year, 11.40 percent over the past three years, and 23.80 percent over the past five years.
Management takes pride in the fund's contrarian label and looks for companies that are currently out of favor. The fund invests in companies with market capitalizations of between $300 million and $2.5 billion, which means that in addition to the small-cap stocks that anchor the portfolio, management will also own some mid-cap names. At any given time, the fund will own shares of exactly 100 companies. Management looks to maintain equal weightings, so each company will represent roughly 1 percent of the fund's overall invested position.
Role in Portfolio
This fund could lend support to a well-balanced portfolio.
The fund is run by a team of four managers.
Dreman Contrarian Small Cap Value Fund has an expense ratio of 1.26 percent.
Like all stock funds, this one comes with some risks.