Wednesday, October 11, 2006

Who says bigger is better? The small caps still have Upside? Several small cap fund managers think so...

A small and micro cap fund to look at- GSXAX- the GARTMORE SMALL CAP FUND.Take a look at this chart- for the past six months - it peaked in May of this year - fell south for the summer, bottoming out in July and August and has come back to close to May levels recently.
... Similar to what I have seen on my site stats chart over the past six months.

"The fund typically invests at least 80% of assets in equity securities of companies with market capitalizations similar to those of companies in the Russell 2000 Index. Management looks at many factors when considering which securities to purchase for the fund, including measures of earnings momentum, relative value, management action, and price trend. The fund may also invest in equity securities of U.S. companies with larger market capitalizations and in foreign securities. "

The Russel Midcap has outperformed the Dow over the last 14 years - so what does that mean moving forward?
As I said in an earlier Blog, the average small retail investor does not own stock in any company in the Dow- we need to look finding profits in small caps. What looks interesting? Follow the money....

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