If you have been looking for Small Cap Value funds, a place to start could be Bridgeway Small Cap Value N (BRSVX Quick QuoteBRSVX - Free Report) . BRSVX has a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.

Objective

Zacks categorizes BRSVX as Small Cap Value, which is a segment packed with options. Known for investing in companies with market caps under $2 billion, Small Cap Value mutual funds represent good value because of many things; stocks in these funds offer low P/E ratios, high dividend yields, and better-than-average P/S ratios.

History of Fund/Manager

BRSVX finds itself in the Bridgeway family, based out of Houston, TX. Bridgeway Small Cap Value N made its debut in January of 2004, and since then, BRSVX has accumulated about $40.76 million in assets, per the most up-to-date date available. The fund's current manager is a team of investment professionals.

Performance

Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 8.75%, 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 3.85%, 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. Compared to the category average of 26.96%, the standard deviation of BRSVX over the past three years is 26.61%. The fund's standard deviation over the past 5 years is 22.49% compared to the category average of 22.84%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. BRSVX has a 5-year beta of 1.25, which means it is likely to be more volatile than the market average. 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. BRSVX's 5-year performance has produced a negative alpha of -7.74, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Holdings

Examining 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 primarily on equities that are traded in the United States.

Right now, 86.04% of this mutual fund's holdings are stocks, with an average market capitalization of $1.57 billion. The fund has the heaviest exposure to the following market sectors:

1. Finance
2. Other
3. Retail Trade
4. Industrial Cyclical

Turnover is 87%, which means this fund makes more trades in a given year than the category average.

Expenses

For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, BRSVX is a no load fund. It has an expense ratio of 0.94% compared to the category average of 1.26%. BRSVX is actually cheaper 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, Bridgeway Small Cap Value N ( BRSVX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.

Your research on the Small Cap Value segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.