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Is Wasatch Micro Cap Fund (WMICX) a Strong Mutual Fund Pick Right Now?
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On the lookout for a Small Cap Growth fund? Starting with Wasatch Micro Cap Fund (WMICX - Free Report) should not be a possibility at this time. WMICX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
The world of Small Cap Growth funds is an area filled with options, such as WMICX. These funds tend to create their portfolios around stocks that sport large growth opportunities and market capitalization of less than $2 billion. The companies in these portfolios are usually on the smaller side, and are in up-and-coming industries and markets.
History of Fund/Manager
Wasatch is based in Salt Lake City, UT, and is the manager of WMICX. Wasatch Micro Cap Fund debuted in June of 1995. Since then, WMICX has accumulated assets of about $765.50 million, according to the most recently available information. Daniel Chace is the fund's current manager and has held that role since January of 2004.
Performance
Of course, investors look for strong performance in funds. WMICX has a 5-year annualized total return of 22.67% and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 24.74%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. WMICX's standard deviation over the past three years is 26.12% compared to the category average of 23.59%. Over the past 5 years, the standard deviation of the fund is 21.84% compared to the category average of 20.11%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.27, the fund is likely to be more volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. Over the past 5 years, the fund has a positive alpha of 8.1. This means that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Exploring the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is principally on equities that are traded in the United States.
This fund is currently holding about 88.69% stock in stocks, and these companies have an average market capitalization of $1.42 billion. The fund has the heaviest exposure to the following market sectors:
Health
Technology
Other
Industrial Cyclical
Turnover is 76%, which means, on average, the fund makes fewer trades than the average comparable fund.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, WMICX is a no load fund. It has an expense ratio of 1.64% compared to the category average of 1.22%. WMICX is actually more expensive than its peers when you consider factors like cost.
Investors need to be aware that with this product, the minimum initial investment is $2,000; each subsequent investment needs to be at least $100.
Bottom Line
Overall, Wasatch Micro Cap Fund ( WMICX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, Wasatch Micro Cap Fund ( WMICX ) looks like a poor potential choice for investors right now.
Want even more information about WMICX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.
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Is Wasatch Micro Cap Fund (WMICX) a Strong Mutual Fund Pick Right Now?
On the lookout for a Small Cap Growth fund? Starting with Wasatch Micro Cap Fund (WMICX - Free Report) should not be a possibility at this time. WMICX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
The world of Small Cap Growth funds is an area filled with options, such as WMICX. These funds tend to create their portfolios around stocks that sport large growth opportunities and market capitalization of less than $2 billion. The companies in these portfolios are usually on the smaller side, and are in up-and-coming industries and markets.
History of Fund/Manager
Wasatch is based in Salt Lake City, UT, and is the manager of WMICX. Wasatch Micro Cap Fund debuted in June of 1995. Since then, WMICX has accumulated assets of about $765.50 million, according to the most recently available information. Daniel Chace is the fund's current manager and has held that role since January of 2004.
Performance
Of course, investors look for strong performance in funds. WMICX has a 5-year annualized total return of 22.67% and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 24.74%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. WMICX's standard deviation over the past three years is 26.12% compared to the category average of 23.59%. Over the past 5 years, the standard deviation of the fund is 21.84% compared to the category average of 20.11%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.27, the fund is likely to be more volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. Over the past 5 years, the fund has a positive alpha of 8.1. This means that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Exploring the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is principally on equities that are traded in the United States.
This fund is currently holding about 88.69% stock in stocks, and these companies have an average market capitalization of $1.42 billion. The fund has the heaviest exposure to the following market sectors:
- Health
- Technology
- Other
- Industrial Cyclical
Turnover is 76%, which means, on average, the fund makes fewer trades than the average comparable fund.Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, WMICX is a no load fund. It has an expense ratio of 1.64% compared to the category average of 1.22%. WMICX is actually more expensive than its peers when you consider factors like cost.
Investors need to be aware that with this product, the minimum initial investment is $2,000; each subsequent investment needs to be at least $100.
Bottom Line
Overall, Wasatch Micro Cap Fund ( WMICX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, Wasatch Micro Cap Fund ( WMICX ) looks like a poor potential choice for investors right now.
Want even more information about WMICX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.