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Is TCM Small Cap Growth Fund (TCMSX) a Strong Mutual Fund Pick Right Now?
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There are plenty of choices in the Small Cap Growth category, but where should you start your research? Well, one fund that might be worth investigating is TCM Small Cap Growth Fund (TCMSX - Free Report) . TCMSX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), 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 TCMSX. 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
TCM Funds is based in Portland, OR, and is the manager of TCMSX. TCM Small Cap Growth Fund made its debut in October of 2004, and since then, TCMSX has accumulated about $370.80 million in assets, per the most up-to-date date available. Richard J. Johnson is the fund's current manager and has held that role since October of 2004.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 16.97%, 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 14.71%, 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 TCMSX over the past three years is 12.97% compared to the category average of 13.97%. The standard deviation of the fund over the past 5 years is 13.2% compared to the category average of 13.82%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should always remember the downsides to a potential investment, and this segment carries some risks one should be aware of. In TCMSX's case, the fund lost 52.64% in the most recent bear market and outperformed its peer group by 0.43%. This means that the fund could possibly be a better choice than its peers during a down market environment.
Investors should note that the fund has a 5-year beta of 0.97, so it is likely going to be as volatile as 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. TCMSX has generated a positive alpha over the past five years of 1.82, demonstrating that 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, TCMSX is a no load fund. It has an expense ratio of 0.95% compared to the category average of 1.34%. TCMSX is actually cheaper than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $2,500 and that each subsequent investment needs to be at $500.
Bottom Line
Overall, TCM Small Cap Growth Fund has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, TCM Small Cap Growth Fund looks like a good potential 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 TCMSX too 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.
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Is TCM Small Cap Growth Fund (TCMSX) a Strong Mutual Fund Pick Right Now?
There are plenty of choices in the Small Cap Growth category, but where should you start your research? Well, one fund that might be worth investigating is TCM Small Cap Growth Fund (TCMSX - Free Report) . TCMSX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), 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 TCMSX. 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
TCM Funds is based in Portland, OR, and is the manager of TCMSX. TCM Small Cap Growth Fund made its debut in October of 2004, and since then, TCMSX has accumulated about $370.80 million in assets, per the most up-to-date date available. Richard J. Johnson is the fund's current manager and has held that role since October of 2004.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 16.97%, 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 14.71%, 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 TCMSX over the past three years is 12.97% compared to the category average of 13.97%. The standard deviation of the fund over the past 5 years is 13.2% compared to the category average of 13.82%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
Investors should always remember the downsides to a potential investment, and this segment carries some risks one should be aware of. In TCMSX's case, the fund lost 52.64% in the most recent bear market and outperformed its peer group by 0.43%. This means that the fund could possibly be a better choice than its peers during a down market environment.
Investors should note that the fund has a 5-year beta of 0.97, so it is likely going to be as volatile as 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. TCMSX has generated a positive alpha over the past five years of 1.82, demonstrating that 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, TCMSX is a no load fund. It has an expense ratio of 0.95% compared to the category average of 1.34%. TCMSX is actually cheaper than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $2,500 and that each subsequent investment needs to be at $500.
Bottom Line
Overall, TCM Small Cap Growth Fund has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, TCM Small Cap Growth Fund looks like a good potential 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 TCMSX too 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.