These small funds have racked up big returns
.bodytext {float: left; } .floatimg-left-hort { float:left; margin-top:10px; margin-right: 10px; width:300px; clear:left;} .floatimg-left-caption-hort { float:left; margin-bottom:10px; width:300px; margin-right:10px; clear:left;} .floatimg-left-vert { float:left; margin-top:10px; margin-right:15px; width:200px;} .floatimg-left-caption-vert { float:left; margin-right:10px; margin-bottom:10px; font-size: 10px; width:200px;} .floatimg-right-hort { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 300px;} .floatimg-right-caption-hort { float:left; margin-right:10px; margin-bottom:10px; width: 300px; font-size: 10px; } .floatimg-right-vert { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px;} .floatimg-right-caption-vert { float:left; margin-right:10px; margin-bottom:10px; width: 200px; font-size: 10px; } .floatimgright-sidebar { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px; border-top-style: double; border-top-color: black; border-bottom-style: double; border-bottom-color: black;} .floatimgright-sidebar p { line-height: 115%; text-indent: 10px; } .floatimgright-sidebar h4 { font-variant:small-caps; } .pullquote { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 150px; background: url(http://www.dmbusinessdaily.com/DAILY/editorial/extras/closequote.gif) no-repeat bottom right !important ; line-height: 150%; font-size: 125%; border-top: 1px solid; border-bottom: 1px solid;} .floatvidleft { float:left; margin-bottom:10px; width:325px; margin-right:10px; clear:left;} .floatvidright { float:right; margin-bottom:10px; width:325px; margin-right:10px; clear:left;} Dear Mr. Berko:
I have seven mutual funds, each with huge portfolios, and they just don’t seem to appreciate like other funds I read about. My wife suggests, and I agree, that the size of the portfolio keeps the fund from moving up much. Could you recommend about six or eight mutual funds with portfolios less than $500 million? I’ve got $40,000 to invest, and I’d like to put $20,000 into two funds with small portfolios.
S.B., Kankakee, Ill.
Dear S.B.:
When assets in an open-end mutual fund are just a few hundred million dollars, it could be an indication that the fund’s performance is below average. Money chases success, so a poorly performing mutual fund is unlikely to attract new money. But there are exceptions to the rule that “a fund’s assets vary proportionately to its success.”
Fortunately, a longtime acquaintance, Drago Lopez, is a self-recognized expert in the selection and recommendation of small-portfolio mutual funds that have less than $500 million in market value. So I called Drago and begged him for the names of a few “small molecule” mutuals that have had and should continue to have good performance.
The following are some of his picks. Be mindful that their past successes will not necessarily segue into identical future performances.
Bruce Fund (BRUFX-$409.65) is a five-star small-cap fund with a $390 million portfolio. It has a five-year average return of a stunning 28 percent. The minimum investment in this no-load fund is $1,000, and its toll-free number is (800) 872-7823.
Robeco Boston Partners Small-Cap Value Fund (BPSCX-$20.96) is a three-star small-cap value fund with a $195 million portfolio. It has a five-year average return of 13.7 percent. The minimum investment in this no-load fund is $2,500; its toll-free number is (888) 261-4073.
Aston/Tamro Small-Cap Fund (ATASX-$19.20) is a three-star small-cap blend fund with a $250 million portfolio and a five-year annual return averaging 14.7 percent. The minimum investment in this no-load fund is $2,500, and ATASX can be reached at (800) 992-8151.
Matrix Advisors Value Fund (MAVFX-$60.10) is a three-star large-cap blend fund with $225 million under management. It has a five-year average return of 9.7 percent. The minimum investment in this no-load fund is $1,000, and you can ring MAVFX at (866) 209-1967.
Bridgeway Large-Cap Value Fund (BRLVX-$15.98) is a five-star large-cap value fund with a teeny, tiny portfolio of $95 million. It has a three-year annual return of 15 percent and has only been in business for three years. The minimum investment is $1,000; call (800) 661-3550.
Royce Heritage Service Fund (RGFAX-$14.36) is a four-star small-cap blend fund with just $115 million under management. It has a 14.6 percent average annual return, and the minimum investment in this no-load fund is $2,000. Call (800) 221-4268.
Manning & Anpier Pro-Blend Maximum Term Fund (EXHAX-$18.66) is a large-cap blend fund with $450 million under management. This five-star fund has a five-year 11.9 percent average annual return. EXHAX is no-load, and a representative will answer the phone at (800) 466-3863.
Finally, Neuberger Berman Regency Fund (NBRVX-$18.43) is a three-star fund with only $110 million in its medium-cap value portfolio. It has a five-year average annual return of 15.2 percent. The minimum investment in this no-load fund is $1,000 and its toll free number is (800) 877-9700.
Don’t try to cherry-pick from this list. It’s much safer to spread your money among all eight of them. Please address your financial questions to Malcolm Berko, P.O. Box 1416, Boca Raton, Fla. 33429 or e-mail him at malber@adelphia.net.© Copley News Service
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