Founded in 1993, Fuller & Thaler Asset Management uses behavioral finance concepts in its investment approaches. It focuses on U.S. small-cap and mid-cap equities looking to capitalize on market imbalances stemming from investor biases like reacting excessively to immediate short-term news or following the crowd, which may lead to stocks being mispriced. By identifying these chances, Fuller & Thaler aims to invest in undervalued stocks before the broader market recognizes their value. This distinctive strategy aims to provide diversification by focusing on areas where behavioral biases often create pricing inefficiencies making it a compelling choice for investments.

We have chosen two Fuller & Thaler mutual funds — FullerThaler Behavioral Sm-Cp Eq Inv (FTHNX Quick QuoteFTHNX - Free Report) and Fuller & Thaler Behavioral Sm-Cp Gr Inv (FTXNX Quick QuoteFTXNX - Free Report) — that investors should buy now for the long term. These funds have a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), positive three-year and five-year annualized returns, minimum initial investments within $5000 and expense ratios considerably lower than the category average. So, these funds have provided a comparatively stronger performance and carry a lower fee.

Fuller & Thaler Behavioral Sm-Cp Eq Inv seeks capital appreciation by investing most of its assets, along with borrowings, if any, in small-cap U.S.-based companies. FTHNX advisors choose to invest in companies that are incorporated, headquartered and earn most of their revenues in the United States.

Raife Giovinazzo has been the lead manager of FTHNX since Feb. 28, 2013. Most of the fund’s holdings were in companies like EMCOR Group, Inc. (3.8%), Acuity Brands, Inc. (2.9%) and Commercial Metals Co (2.7%) as of June 30, 2024.

FTHNX’s 3-year and 5-year annualized returns are 12.6% and 15.7%, respectively. FTHNX has a Zacks Mutual Fund Rank #1. Its net expense ratio is 1.06%.

To see how this fund performed compared to its category and other 1 and 2 Ranked Mutual Funds, please click here.

Fuller & Thaler Behavioral Sm-Cp Gr Inv aims to invest most of its net assets in small-cap companies based in the United States. FTXNX advisors may invest a small portion of the net assets in real estate investment trusts as well.

Frederick W. Stanske has been the lead manager of FTXNX since Dec. 21, 2017. Most of the fund’s holdings were in companies like e.l.f. Beauty, Inc. (5.1%), Vertiv Holdings Co (4.6%) and Super Micro Computer, Inc. (4.4%) as of June 30, 2024.

FTXNX’s 3-year and 5-year annualized returns are 6% and 19%, respectively. FTXNX has a Zacks Mutual Fund Rank #1. Its net expense ratio is 1.25%.

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