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Small-cap funds have held their own in this year of marketturmoil. But even among the small stuff, you've got to knowwhere to look for a sound investment.
Take the Bridgeway Ultra-Small Company Tax Advantage Fund(BRSIX). This mouthful of a fund is a passively managed index fundthat invests in the tiniest of companies-the ultra-small caps. Andit's a quant fund: There are no visits to companies for JohnMontgomery, the fund's manager. No, choosing which companiesbest replicate his chosen index is all a matter of working withcomputers and numbers.
The Center for Research and Security Prices Cap Based Portfolio10 Index (CRSP), another mouthful, is the index Montgomery'sfund is designed to mimic. It's run by academics out of theUniversity of Chicago.
Montgomery fancies the ultra-small companies because of theirhigh reward potential. "The big kick for extra returns withinsmall companies is in the very smallest companies," heexplains. But getting at those extra rewards means taking on extrarisks.
So even though the fund was up 12.6 percent through August 22,understand that there's never been a risk-free lunch on WallStreet.
Performance: Year-to-datethrough August 22, up 12.6 percent
Web site:www.bridgewayfund.com
Toll-free number: (800)661-3550
Dian Vujovich is an author,syndicated columnist and thepublisher of fund investing site www.fundfreebies.com.
