MicroCap Opportunities Fund
Michael CorbettChief Investment Officer & Portfolio Manager
- Portfolio Manager since 1999, co-manager beginning in 1996
- Named as Barron’s/Value Line Top 100 Mutual Fund Manager from 2003–2007
- Joined Perritt Capital Management as a research analyst in 1990
Investment Criteria The Fund invests in companies that are listed in the bottom two deciles of the major stock exchanges as ranked by market capitalization. Today, the Fund invests in companies that at the time of initial investment have a market capitalization between $50 and $500 million.
Bottom-Up Process The management team uses a bottom up approach, with ideas provided by in-house research and an external network of small company research boutiques and regional brokerage firms that has been cultivated over twenty-five years.
Nine-Point Evaluation Companies are subjected to a nine-point evaluation based on balance sheets, cash flow and income statements that the management team believes demonstrate whether a company is acting in the interests of its shareholders.
Fundamental Research For companies whose fundamentals look favorable based on the nine point evaluation, the next step is to assess its broader business prospects. The management team meets with 3-5 company executives each week to identify what in our opinion are growing, niche companies with innovative products and/or services and the potential to build franchises and brands.
Valuation Assessment Stocks are assessed based on valuations, favoring companies with modest valuation multiples relative to long term growth prospects. Companies are considered for purchase if they fall under a range of valuation determinations, including GARP or Deep Value.
The Perritt MicroCap Opportunities Fund (the “Fund”) seeks long-term capital appreciation.
Fund managers named to the Barron’s list of the industry’s Top 100 have consistently outperformed their peers. The Barron’s/Value Line annual rankings system awards points to managers who generate more stable returns and subtracts points from funds deemed to volatile. Value Line first screens out those Funds with more than two lead managers and managers with less than three years’ tenure. The remaining funds are then organized by investment objective, and then sector funds and those with less than $200 million in assets are eliminated. The Barron’s Value/Line Survey was discontinued after 2007.
The sector classifications represented in the graph are in accordance with Global Industry Classification Standard (GICS®), which was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor Financial Services LLC.