Small Cap Value fund seekers should consider taking a look at Boston Partners Small Cap Value II Institutional (BPSIX Quick QuoteBPSIX - Free Report) . BPSIX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.

Objective

BPSIX is one of many Small Cap Value funds to choose from. Small Cap Value mutual funds typically invest in companies with market caps under $2 billion. These funds represent value because they offer more bang for an owner's buck, often demonstrated by lower P/E Ratios, high dividend yields, and better-than-average price-to-sales ratios.

History of Fund/Manager

BPSIX is a part of the BostonPartners family of funds, a company based out of New York, NY. The Boston Partners Small Cap Value II Institutional made its debut in July of 1998 and BPSIX has managed to accumulate roughly $771.77 million in assets, as of the most recently available information. George Gumpert is the fund's current manager and has held that role since December of 2005.

Performance

Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 7.17%, 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 16.19%, 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. Compared to the category average of 14.59%, the standard deviation of BPSIX over the past three years is 17.18%. Looking at the past 5 years, the fund's standard deviation is 18.15% compared to the category average of 15.88%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 0.92, the fund is likely to be less 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. With a negative alpha of -4.24, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Holdings

Investigating 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 76.79% in stocks, which have an average market capitalization of $3.76 billion. The fund has the heaviest exposure to the following market sectors:

• Finance
• Technology
• Industrial Cyclical

Turnover is about 70%, so those in charge of the fund make fewer trades than its comparable peers.

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, BPSIX is a no load fund. It has an expense ratio of 0.99% compared to the category average of 1.03%. From a cost perspective, BPSIX is actually cheaper than its peers.

Investors need to be aware that with this product, the minimum initial investment is $100,000; each subsequent investment needs to be at least $5,000.

Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.

Bottom Line

Overall, Boston Partners Small Cap Value II Institutional ( BPSIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Boston Partners Small Cap Value II Institutional ( BPSIX ) looks like a great potential choice for investors right now.

Don't stop here for your research on Small Cap Value 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 BPSIX to its peers 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.