Hi guys,
I was thinking to add an actively managed microcap fund to my portfolio.
There is some research based evidence that this is one of the segments where active management can outperform systematically.
Any recommendations or places there to find a solid comparison?
Was looking at the DFA International Small Cap Value, but i am not sure if i can access as retail investor.
Best
Joe
You can access small cap value funds from
DFA and Avantis.
But those are way more small than micro.
There are AVUV and DFSV for US
AVDV and DISV (dfa small cap value international) for develeoped international ex-US
AVEE for emerging markets small cap (with a light value tilt, but not specifically value)
Those are systemtically active, but not in the traditional sense active stock picking.
They dont pick stocks but filter stocks alogorythmically by their set criteria i.e. joint sort on profitavility and price/book, price/earnings.
Only available via IBKR (and Swissquote probably) btw.
Avantis will release a global small cap value ucits fund this year though, that you then can buy at most brokers like Degiro.
I dont know of specific microcap funds that are good.
Are you refering to factor funds (small cap value) like those I mentioned or actual active funds, where the fund manager decide on what stocks to buy?
Actual active funds woth stockpicking on fundamental analysis. Or at least if quant based then a sophisticated model.
Not a passive strategy with a simple factor tilt.
I understand from the fund managers view its not very attractive, as the volumes are low and work is rather high. But maybe some smaller firms offer such kind of funds?
I mean that‘s DFA‘s and Avantis thing.
They are quant shops employing an army of PHDs essentially.
Their funds are also all multi-factor, not simple tilt funds.
But I‘m not sure if factor funds are generally what you are looking for by what you write.
Small value especially also can have long stretches of underperformance and then huge spikes again.