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Is BlackRock Small Cap Growth Equity A (CSGEX) a Strong Mutual Fund Pick Right Now?
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On the lookout for a Small Cap Growth fund? Starting with BlackRock Small Cap Growth Equity A (CSGEX - Free Report) is one possibility. CSGEX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
CSGEX is one of many different Small Cap Growth funds to choose from. Small Cap Growth mutual funds build portfolios around stocks with markets caps under $2 billion and large growth opportunities. Additionally, these portfolios typically highlight smaller companies in promising markets and industries.
History of Fund/Manager
BlackRock is responsible for CSGEX, and the company is based out of New York, NY. BlackRock Small Cap Growth Equity A debuted in September of 1993. Since then, CSGEX has accumulated assets of about $196.99 million, according to the most recently available information. The fund's current manager is a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 7.37%, and it sits in the bottom 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 14.94%, which places it in the middle 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. Over the past three years, CSGEX's standard deviation comes in at 16.62%, compared to the category average of 10.85%. Over the past 5 years, the standard deviation of the fund is 16.5% compared to the category average of 10.69%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment. In CSGEX's case, the fund lost 50.99% in the most recent bear market and outperformed its peer group by 1.98%. These results could imply that the fund is a better choice than its peers during a sliding market environment.
Nevertheless, investors should also note that the fund has a 5-year beta of 1.21, which means it is hypothetically 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. CSGEX's 5-year performance has produced a negative alpha of -4.6, 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, 75.86% of this mutual fund's holdings are stocks, with an average market capitalization of $2.33 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Health
Industrial Cyclical
Services
With turnover at about 129%, this fund is making more trades in a given year than the average of comparable funds.
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, CSGEX is a load fund. It has an expense ratio of 0.75% compared to the category average of 1.25%. Looking at the fund from a cost perspective, CSGEX is actually cheaper than its peers.
While the minimum initial investment for the product is $1,000, investors should also note that each subsequent investment needs to be at least $50.
Bottom Line
Overall, BlackRock Small Cap Growth Equity A ( CSGEX ) has a high Zacks Mutual Fund rank, weak performance, worse downside risk, and lower fees compared to its peers.
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 CSGEX to its peers as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.
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Is BlackRock Small Cap Growth Equity A (CSGEX) a Strong Mutual Fund Pick Right Now?
On the lookout for a Small Cap Growth fund? Starting with BlackRock Small Cap Growth Equity A (CSGEX - Free Report) is one possibility. CSGEX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
CSGEX is one of many different Small Cap Growth funds to choose from. Small Cap Growth mutual funds build portfolios around stocks with markets caps under $2 billion and large growth opportunities. Additionally, these portfolios typically highlight smaller companies in promising markets and industries.
History of Fund/Manager
BlackRock is responsible for CSGEX, and the company is based out of New York, NY. BlackRock Small Cap Growth Equity A debuted in September of 1993. Since then, CSGEX has accumulated assets of about $196.99 million, according to the most recently available information. The fund's current manager is a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 7.37%, and it sits in the bottom 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 14.94%, which places it in the middle 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. Over the past three years, CSGEX's standard deviation comes in at 16.62%, compared to the category average of 10.85%. Over the past 5 years, the standard deviation of the fund is 16.5% compared to the category average of 10.69%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment. In CSGEX's case, the fund lost 50.99% in the most recent bear market and outperformed its peer group by 1.98%. These results could imply that the fund is a better choice than its peers during a sliding market environment.
Nevertheless, investors should also note that the fund has a 5-year beta of 1.21, which means it is hypothetically 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. CSGEX's 5-year performance has produced a negative alpha of -4.6, 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, 75.86% of this mutual fund's holdings are stocks, with an average market capitalization of $2.33 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Health
- Industrial Cyclical
- Services
With turnover at about 129%, this fund is making more trades in a given year than the average of comparable funds.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, CSGEX is a load fund. It has an expense ratio of 0.75% compared to the category average of 1.25%. Looking at the fund from a cost perspective, CSGEX is actually cheaper than its peers.
While the minimum initial investment for the product is $1,000, investors should also note that each subsequent investment needs to be at least $50.
Bottom Line
Overall, BlackRock Small Cap Growth Equity A ( CSGEX ) has a high Zacks Mutual Fund rank, weak performance, worse downside risk, and lower fees compared to its peers.
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 CSGEX to its peers as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.