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Is Wasatch Micro Cap Value Fund (WAMVX) a Strong Mutual Fund Pick Right Now?
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Having trouble finding a Small Cap Growth fund? Wasatch Micro Cap Value Fund (WAMVX - Free Report) is a possible starting point. WAMVX possesses a Zacks Mutual Fund Rank of 3 (Hold), 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 WAMVX. 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 WAMVX. Wasatch Micro Cap Value Fund debuted in July of 2003. Since then, WAMVX has accumulated assets of about $323.27 million, according to the most recently available information. The fund's current manager, Brian Bythrow, has been in charge of the fund since July of 2003.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. WAMVX has a 5-year annualized total return of 22.71% and it sits in the middle third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 24.88%, 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. The standard deviation of WAMVX over the past three years is 25.79% compared to the category average of 25.41%. Looking at the past 5 years, the fund's standard deviation is 20.5% compared to the category average of 20.65%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.18, which means it is hypothetically more volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. With a positive alpha of 3.72, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, WAMVX is a no load fund. It has an expense ratio of 1.74% compared to the category average of 1.21%. Looking at the fund from a cost perspective, WAMVX is actually more expensive than its peers.
This fund requires a minimum initial investment of $2,000, and each subsequent investment should be at least $100.
Bottom Line
Overall, Wasatch Micro Cap Value Fund ( WAMVX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and higher fees, this fund looks like a somewhat average choice for investors right now.
For additional information on the Small Cap Growth area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into WAMVX too for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.
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Is Wasatch Micro Cap Value Fund (WAMVX) a Strong Mutual Fund Pick Right Now?
Having trouble finding a Small Cap Growth fund? Wasatch Micro Cap Value Fund (WAMVX - Free Report) is a possible starting point. WAMVX possesses a Zacks Mutual Fund Rank of 3 (Hold), 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 WAMVX. 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 WAMVX. Wasatch Micro Cap Value Fund debuted in July of 2003. Since then, WAMVX has accumulated assets of about $323.27 million, according to the most recently available information. The fund's current manager, Brian Bythrow, has been in charge of the fund since July of 2003.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. WAMVX has a 5-year annualized total return of 22.71% and it sits in the middle third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 24.88%, 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. The standard deviation of WAMVX over the past three years is 25.79% compared to the category average of 25.41%. Looking at the past 5 years, the fund's standard deviation is 20.5% compared to the category average of 20.65%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.18, which means it is hypothetically more volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. With a positive alpha of 3.72, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, WAMVX is a no load fund. It has an expense ratio of 1.74% compared to the category average of 1.21%. Looking at the fund from a cost perspective, WAMVX is actually more expensive than its peers.
This fund requires a minimum initial investment of $2,000, and each subsequent investment should be at least $100.
Bottom Line
Overall, Wasatch Micro Cap Value Fund ( WAMVX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and higher fees, this fund looks like a somewhat average choice for investors right now.
For additional information on the Small Cap Growth area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into WAMVX too for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.