This Morningstar 5-star rated fund’s largest holdings are in consumer cyclical (25.12%), Industrials (20.02%), Technology (11.55%) and Energy (11.34%).
Hodges Small Cap Fund (HDPSX)
from BIResearch
Hodges Small Cap Fund (HDPSX) is a small-cap focused fund that was in the top 25% of funds for 2013, and for 2012, and 2011, and 2010 and 2009, and gained 381% in the current bull market (vs. the S&P’s 178%), while doing no worse than the market in 2008.
It is also rated 5-stars over-all by Morningstar, 5-stars for the past 3 years, and 5-stars for the past 5 years. Since its inception (12/18/07, which almost includes the entire bear market) the fund has had an annualized rate of growth of 13.44% as compared to the market’s 8.99%.
HDPSX is holding a total $920 million (up from $286 million just a year ago). The fund is still open to new investors. But at a certain point, good funds do close, and you can only invest after that if you already own it in a given account. So keep that in mind.
The fund is focused on both growth and value small-cap stocks using rigorous fundamental analysis to find opportunities that may be missed or misunderstood by more conventional approaches. In the vein of buying what you know, nearly a third of this Dallas-based management team’s stocks are located in the Texas area where they can easily kick the tires.
Tom Bishop, BI Research, www.biresearch.com, March 12, 2014