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Is Federated Kaufmann Small Cap C (FKCSX) a Strong Mutual Fund Pick Right Now?
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If you have been looking for Small Cap Growth fund category, a potential starting could be Federated Kaufmann Small Cap C (FKCSX - Free Report) . FKCSX has a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
Objective
FKCSX is part of the Small Cap Growth category, and this segment boasts an array of many other possible options. Small Cap Growth mutual funds usually focus their portfolios on stocks with large growth opportunities and a market cap of under $2 billion. These portfolios tend to feature small companies in up-and-coming industries and markets.
History of Fund/Manager
Federated is based in Pittsburgh, PA, and is the manager of FKCSX. Federated Kaufmann Small Cap C debuted in December of 2002. Since then, FKCSX has accumulated assets of about $138.90 million, according to the most recently available information. A team of investment professionals is the fund's current manager.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. FKCSX has a 5-year annualized total return of 2.9%, and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 7%, which places it in the middle third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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. FKCSX's standard deviation over the past three years is 19.32% compared to the category average of 15.47%. The fund's standard deviation over the past 5 years is 21.23% compared to the category average of 15.04%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.08, so it is likely going to be more volatile than the market at large. 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 negative alpha of -11.42. This means that 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.
Currently, this mutual fund is holding 87.65% in stocks, with an average market capitalization of $14.53 billion. The fund has the heaviest exposure to the following market sectors:
Health
Technology
Other
With turnover at about 30%, this fund is making fewer trades than the average comparable fund.
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, FKCSX is a no load fund. It has an expense ratio of 1.99% compared to the category average of 0.99%. Looking at the fund from a cost perspective, FKCSX is actually more expensive than its peers.
Investors should also note that the minimum initial investment for the product is $1,500 and that each subsequent investment needs to be at $100.
Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.
Bottom Line
Overall, even with its comparatively weak performance, worse downside risk, and higher fees, Federated Kaufmann Small Cap C ( FKCSX ) has a neutral Zacks Mutual Fund rank, and therefore looks a somewhat average choice for investors right now.
Don't stop here for your research on Small Cap Growth funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare FKCSX to its peers as well 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 Federated Kaufmann Small Cap C (FKCSX) a Strong Mutual Fund Pick Right Now?
If you have been looking for Small Cap Growth fund category, a potential starting could be Federated Kaufmann Small Cap C (FKCSX - Free Report) . FKCSX has a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
Objective
FKCSX is part of the Small Cap Growth category, and this segment boasts an array of many other possible options. Small Cap Growth mutual funds usually focus their portfolios on stocks with large growth opportunities and a market cap of under $2 billion. These portfolios tend to feature small companies in up-and-coming industries and markets.
History of Fund/Manager
Federated is based in Pittsburgh, PA, and is the manager of FKCSX. Federated Kaufmann Small Cap C debuted in December of 2002. Since then, FKCSX has accumulated assets of about $138.90 million, according to the most recently available information. A team of investment professionals is the fund's current manager.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. FKCSX has a 5-year annualized total return of 2.9%, and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 7%, which places it in the middle third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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. FKCSX's standard deviation over the past three years is 19.32% compared to the category average of 15.47%. The fund's standard deviation over the past 5 years is 21.23% compared to the category average of 15.04%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.08, so it is likely going to be more volatile than the market at large. 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 negative alpha of -11.42. This means that 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.
Currently, this mutual fund is holding 87.65% in stocks, with an average market capitalization of $14.53 billion. The fund has the heaviest exposure to the following market sectors:
With turnover at about 30%, this fund is making fewer trades than the average comparable fund.
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, FKCSX is a no load fund. It has an expense ratio of 1.99% compared to the category average of 0.99%. Looking at the fund from a cost perspective, FKCSX is actually more expensive than its peers.
Investors should also note that the minimum initial investment for the product is $1,500 and that each subsequent investment needs to be at $100.
Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.
Bottom Line
Overall, even with its comparatively weak performance, worse downside risk, and higher fees, Federated Kaufmann Small Cap C ( FKCSX ) has a neutral Zacks Mutual Fund rank, and therefore looks a somewhat average choice for investors right now.
Don't stop here for your research on Small Cap Growth funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare FKCSX to its peers as well 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.