If you have been looking for Small Cap Growth fund category, a potential starting could be Federated Kaufmann Small Cap C (FKCSX). FKCSX has a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
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.
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.
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.
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.