Micro-cap equity is the firm’s only institutional strategy and we have a 30-year track record of small/micro-cap investing that has been established over multiple market cycles. We believe that this experience makes Perritt well positioned to benefit from the “Small Firm Effect.”1
Low correlation to other asset classes should reduce overall portfolio beta
25-Yr Correlation of PRCGX
R-Squared vs. S&P 500… 0.47 R-Squared vs. Russell 2000… 0.80
No Style Drift
Consistent Focus on Small/MicroCap securities. Initial purchase below $3 billion (PLOWX), $500 million (PRCGX) and $300 million (PREOX) market cap
Capacity-Conscious management has soft-closed funds in the past
Portfolio Manager Michael Corbett named to the Barron’s/Value Line survey of the Top 100 Mutual Fund managers from 2003-2007
Long Term Returns
Flagship Perritt MicroCap Opportunities Fund has a thirty year track record that can be viewed here.
All data as of 12/31/2018.
1 “The Neglected and Small Firm Effects.” Avner Arbel & Paul Strebel, The Financial Review, vol. 18, issue 4, 1982.
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than their original cost. Performance data current to the most recent month end may be obtained by calling (800) 331-8936. The funds impose a 2% redemption fee for shares held less than 90 days. Performance data quoted does not reflect the redemption fee. If reflected, total return would be reduced.
Correlation is a statistical measure of how two securities move in relation to each other. Beta measures the sensitivity of rates of return on a fund to general market movements. A beta above 1 is generally more volatile than the overall market, while a beta below 1 is generally less volatile. R-Squared is a statistical measure that represents the percentage of a fund’s or security’s movements that are explained by movements in a benchmark index. The S&P 500 Index is a broad based unmanaged index of 500 stocks, which is widely recognized as representative of the equity market in general. The Russell 2000 Index consists of the smallest 2,000 companies in a group of 3,000 U.S. companies in the Russell 3000 Index, as ranked by market capitalization. You cannot invest directly in an index.
Diversification does not assure a profit or protect against a loss in a declining market.
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.
Before you invest in the Perritt MicroCap Opportunities Fund, Perritt Ultra MicroCap Fund, or Perritt Low Priced Stock Fund, please refer to the prospectus for important information about the investment company, including investment objectives, risks, charges and expenses. You may also obtain a hard copy of the prospectus by calling 800-331-8936. The prospectus should be read carefully before you invest.
Mutual fund investing involves risk. Principal loss is possible. The Funds invest in smaller companies, which involve additional risks such as limited liquidity and greater volatility. The Funds invest in micro cap companies which tend to perform poorly during times of economic stress. The Ultra MicroCap Fund and Low Priced Stock Fund may invest in early stage companies which tend to be more volatile and somewhat more speculative than investments in more established companies. Low Priced stocks are generally more volatile than higher priced securities.
Shares of the Perritt MicroCap Opportunities Fund, Perritt Ultra MicroCap Fund, and Perritt Low Priced Stock Fund are offered only to United States residents, and information on this site is intended for such persons.
The Perritt Funds are distributed by Quasar Distributors, LLC.