So, how does the Private Capital Management Value Fund align with the non-performance factors discussed above? The table below highlights where we fall:
1. The analysis relied on a data set comprised of investor share class returns for all small-cap value and small-cap blend funds that received a 4-star or 5-star rating from Morningstar for the trailing 3-year period, along with all small-cap value and small-cap blend category funds that received a Morningstar Gold, Silver or Bronze analyst rating. The data set identified 45 as meeting the analysis criteria as of August 31, 2022. Growth category funds were excluded due to their unique valuation and trading characteristics.
2. The Russell 2000 Index is an unmanaged index consisting of the smallest 2,000 companies in the Russell 3000 Index, as ranked by market capitalization.
The performance data quoted represents past performance. Past performance is no guarantee of future results. Investment return and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The performance shown reflects fee waivers / reimbursements in effect, without which performance would have been lower. Total returns are based on net change in NAV with reinvestment of all dividends. Current performance may be lower or higher than the performance data quoted. The returns shown do not reflect a 2% fee applied to shares redeemed within 30 days of purchase. For performance current to the most recent month-end, please call 1-800-763-0337. The Fund’s Gross Expense Ratio is 1.73%.
Investors should consider the relevant objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus contains this and other important information about the Private Capital Management Value Fund, and it may be obtained by visiting our website at www.pcmvaluefund.com. Read it carefully before investing.
Shares of the Private Capital Management Value Fund are distributed by Foreside Funds Distributors LLC, not an adviser affiliate.
Mutual Fund investing involves risk and it is possible to lose money by investing in a fund. The Fund frequently maintains a more concentrated portfolio than many diversified funds and its value may fluctuate more widely. The Fund may engage in strategies that are considered risky or invest in stocks of companies that are undervalued, which may result in greater volatility. The Fund invests primarily in small-cap companies, which involve additional risks such as limited liquidity and greater volatility. The Fund has a value-oriented approach and is subject to the risk that a security believed to be undervalued does not appreciate as anticipated or experiences a decline in value.
Alpha: A term used in investing to describe an investment strategy’s ability to beat the market. Alpha = R – Rf – beta (Rm-Rf) where R = Portfolio Return, Rf = Risk-free ROR, & Rm = Market Return. For instance, a hypothetical investment with an alpha of 1 indicates a 1% outperformance of the benchmark.
Active Share: A measure of the percentage of stock holdings in a manager’s portfolio that differs from the benchmark index.
Market Cap: The total dollar market value of a company’s outstanding shares of stock.
Morningstar Small-Cap Value Funds: Of 473 Small-Cap Value Funds, based on risk-adjusted returns, the top 90-100% (approximately 47 funds) receive 5 stars and the top 67.5-90% (approximately 59 funds) receive 4 stars.
Morningstar Small-Cap Blend Funds: Of 572 Small-Cap Blend Funds, based on risk-adjusted returns, the top 90-100% (approximately 57 funds) receive 5 stars and the top 67.5-90% (approximately 72 funds) receive 4 stars.
Morningstar Gold, Silver and Bronze Analyst Ratings: The top three ratings, Gold, Silver and Bronze, all indicate that Morningstar analysts rate the fund highly; the difference between designations corresponds to differences in the level of analyst conviction in a fund’s ability to outperform its benchmark and peers through time, within the context of the level of risk taken. The Morningstar Analyst Rating does not express a view on a given asset class or peer group; rather, it seeks to evaluate each fund within the context of its objective, an appropriate benchmark, and peer group.
SOURCE: Investopedia, Morningstar