SMA Strategies

Perritt Capital Management is an Emerging Manager of microcap equities committed to serving the institutional investor market. The firm is independently owned and has been investing in micro-cap companies for over two decades with the same management team. Micro-cap equity is Perritt Capital Management's only institutional strategy. The firm's investment philosophy has been built on the research of Rolf Banz, a University of Chicago doctoral student who discovered the first crack in the foundation of the efficient market theory, dubbed "the small firm effect" (Journal of Financial Economics, vol. 9(1), pages 3-18, March, 1981). The "small firm effect" is the tendency of common stocks of small companies to outperform the stocks of large companies at equivalent levels of risk. Perritt Capital Management has an established infrastructure and staff capable of managing institutional level accounts. The firm has served as the advisor to The Perritt MicroCap Opportunities Fund (an Investment Company Act of 1940 registered mutual fund) for more than twenty years. As a result, firm qualifications include:
  • In-house compliance staff (the firm's current CCO has been in the investment industry for more than twenty years).
  • A client service team (more than sixty years combined experience) that seeks to provide superior service to institutional investors.
  • A back office staff (led by an individual with more than 13 years of experience in the mutual fund industry) that has proven successful at back office duties for a Registered Investment Company.

Perritt MicroCap Opportunities Strategy

The Perritt MicroCap Opportunities strategy invests in companies that are listed in the bottom two deciles of the major stock exchanges as ranked by market capitalization. Today, the strategy invests in companies that at the time of initial investment have a market capitalization between $50 and $500 million.

Perritt Ultra MicroCap Strategy

The Perritt Ultra MicroCap strategy invests in companies that are listed in the bottom decile of the major stock exchanges as ranked by market capitalization. Today, the strategy invests in companies that at the time of initial investment have a market capitalization below $300 million.

Institutional News and Accolades

Investment Manager Top Gun – Informa Investment Solutions

The Perritt Ultra MicroCap Strategy earned the title of Micro-Cap “Investment Manager Top Gun” by Informa Investment Solutions for the second quarter of 2017.  Informa Investment Solutions is an independent supplier of comprehensive separate account data.

The Perritt Ultra MicroCap Strategy earned the title of Micro-Cap “Investment Manager Top Gun” by Informa Investment Solutions for the second quarter of 2016.  Informa Investment Solutions is an independent supplier of comprehensive separate account data.

The Perritt Ultra MicroCap Strategy earned the title of Micro-Cap “Investment Manager Top Gun” by Informa Investment Solutions for the third quarter of 2015.  Informa Investment Solutions is an independent supplier of comprehensive separate account data.

Bull & Bear Masters Q2 2012 – Informa Investment Solutions

The Perritt Ultra MicroCap Strategy earned the title of Micro-Cap “Bull & Bear Masters” by Informa Investment Solutions for the second quarter of 2012.  Informa Investment Solutions is an independent supplier of comprehensive separate account data.  Bull & Bear masters are the top performing strategies which possess an Upside Market Capture ratio of 100 or more and a Downside Market Capture Ratio of 100 or less for the latest three year period.

Bull & Bear Masters Q3 2011 – Informa Investment Solutions

The Perritt Ultra MicroCap Strategy earned the title of Micro-Cap “Bull & Bear Masters” by Informa Investment Solutions for the third quarter of 2011.  Informa Investment Solutions is an independent supplier of comprehensive separate account data.  Bull & Bear masters are the top performing strategies which possess an Upside Market Capture ratio of 100 or more and a Downside Market Capture Ratio of 100 or less for the latest three year period.

Investment Manager Top Gun – Informa Investment Solutions

The Perritt Ultra MicroCap Strategy earned the title of Micro-Cap “Investment Manager Top Gun” by Informa Investment Solutions for the first quarter of 2011.  Informa Investment Solutions is an independent supplier of comprehensive separate account data.

Emerging Manager Monthly

“Perritt Sees Big Opportunities In Micro-Cap For Institutions.”  Portfolio Manager Michael Corbett discusses how Perritt Capital Management may stand to benefit as institutions have been considering micro cap equities no longer as a niche position but as part of a well developed portfolio in the August 2010 issue of Emerging Manager Monthly.

Upside/downside capture ratio shows you whether a given fund has gained more or lost less than a broad market benchmark during periods of market strength and weakness, and if so, by how much.

Past performance does not guarantee future results.

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