Ultra MicroCap Fund
Matthew Brackmann, CFAPortfolio Manager, Director of Institutional Trading
- Portfolio Manager since 2014
- Joined Perritt Capital Management as an equity analyst in 2004
- Awarded a CFA charter and is a member of the CFA Institute and the CFA Society of Chicago
Investment Criteria The Fund invests in companies that are listed in the bottom decile 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 below $300 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 thirty 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 Companies are considered for purchase based on the objective of uncovering price efficiencies. These companies have less institutional ownership coverage and can often be purchased at an earlier stage of development.
The Perritt Ultra MicroCap Fund seeks long-term capital appreciation.
Chartered Financial Analyst (CFA)® is a professional designation given by the CFA® Institute (formerly AIMR) that measures the competence and integrity of financial analysts. Candidates are required to pass three levels of exams covering areas such as accounting, economics, ethics, money management and security analysis. The CFA® charter is one of the most respected designations in finance, considered by many to be the gold standard in the field of investment analysis.