Best Small Cap Mutual Funds

A small cap stock is, broadly speaking a companyWasatch Small Cap Growth has been around
with a market capitalization of less than $800since 1986 with the same fund manager. It has
million and a small cap mutual fund has a primary$722 million under its management and has a
focus of investing in small cap stocks. Anyone29.6% return, moving its rank up to 3 in the small
with a decent mixture of small to mid-cap stocksgrowth category based solely on its one-year
will tend to end up with better returns than areturn. Wasatch has holdings in O'Reilly
portfolio with a majority of large cap stocks. SmallAutomotive Inc, Resources Connection Inc., and
companies tend to outperform on the stockHDFC Bank ADS.
market over a 3-5 year period and if you canBaron Growth is a small growth fund that opened
catch a small cap in its initial cycle you can ride theits doors for business in 1994 and it's current
crest of the wave.manager came on board just one year later. With
The following stocks are well performing small cap$4.9 billion in assets under it's control it's a power
stocks with the following criteria. Each has aon the mutual fund scene. Baron is a no load fund
minimum investment of $3,000, a 5 star rating, anwith an initial investment of just $2,000. This fund
expense ratio less than 1.59%, and a yearlytook some damage in 2008 but has pulled back
return of 16.7%.well and it's YTD is 18.77%, above average for
Buffalo Mutual funds was initiated in 1998 and isthe category. Baron has holdings in DeVry Inc.,
currently managing $2.2 billion in assets. It hasanother top technical school, Strayer Education
been a very reliable performer for the lastInc., Edwards Lifesciences Corporation, and
several years with a return at 28% and it sitsseveral other education and tech stocks.
squarely at the top of its category in the 1-yearSmall cap stocks serve to balance a profile well
return. Buffalo has as it's holdings ITT Educational,and can be used liberally. Since most of the initial
one of the top tech schools in the world, Fidelityinvestment requirements are very low it is easy
Institutional MM Fds Government I, WMSto get into a small cap and spreading them around
Industries and Panera Bread Company Inc A.can greatly increase your bottom line.