On the lookout for a Small Cap Growth fund? Starting with Virtus KAR Small-Cap Growth I (PXSGX) should not be a possibility at this time. PXSGX bears a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
The world of Small Cap Growth funds is an area filled with options, such as PXSGX. 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
Virtus Funds is responsible for PXSGX, and the company is based out of Hartford, CT. Virtus KAR Small-Cap Growth I debuted in June of 2006. Since then, PXSGX has accumulated assets of about $378.95 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 has delivered a 5-year annualized total return of -6.76%, 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 -4.51%, which places it in the bottom 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. Over the past three years, PXSGX’s standard deviation comes in at 18.58%, compared to the category average of 13.34%. The standard deviation of the fund over the past 5 years is 19.99% compared to the category average of 14.88%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.93, 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. Over the past 5 years, the fund has a negative alpha of -16.32. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.