Perritt Low Priced Stock Fund
Michael CorbettChief Investment Officer & Portfolio Manager
- Portfolio Manager since inception
- 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 common stocks of companies with market capitalizations that are below $3 billion at the time of initial purchase. The Fund will invest in low priced stocks which we define as those companies trading at or below $15 per share at the time of initial purchase
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 Growth at a Reasonable Price (GARP) or Deep Value.
The Perritt Low Priced Stock Fund (the “Fund”) seeks long-term capital appreciation.
The fund is a successor to a separately managed account incepted on 6/30/2012.
Cash Flow measures the cash generating capability of a company by adding non-cash charges (e.g. depreciation) and interest expense to pretax income.
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.