The Red Chip Money Report
Michael Corbett, CIO and Portfolio Manager, discusses the firm’s investment strategy on “The RedChip Money Report™.”
“The RedChip Money Report™” delivers insightful commentary on small-cap investing, interviews with Wall Street analysts, financial book reviews, as well as featured interviews with executives of public companies. The weekly program airs on Fox Business as well as Bloomberg UK, Bloomberg Europe, and Bloomberg Asia.
For a current hypothetical growth of $10,000 graph click here.
For more information on many of the charts listed in the video see:
S&P 500 is defined as an index of 500 stocks chosen for market size, liquidity and industry grouping, among other factors. The S&P 500 is designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe.
The Russell Microcap Index is a capitalization weighted index of 2,000 small cap and micro-cap stocks that captures the smallest 1,000 companies in the Russell 2000, plus 1,000 smaller U.S.-based listed stocks. It is not possible to invest directly in an index.
The Russell 2000 Index is an index measuring the performance of approximately 2,000 small-cap companies in the Russell 3000 Index, which is made up of 3,000 of the biggest U.S. stocks. The Russell 2000 serves as a benchmark for small-cap stocks in the United States.
Cash Flow is defined as a revenue or expense stream that changes a cash account over a given period.
Micro-cap and small capitalization companies typically have relatively lower revenues, limited product lines, lack of management depth, higher risk of insolvency and a smaller share of the market for their products or services than larger capitalization companies. Generally, the share prices of stocks of micro-cap and small capitalization companies are more volatile than those of larger capitalization companies. Also, the returns of micro-cap and small capitalization company stocks may vary, sometimes significantly, from the returns of the overall market. In addition, micro-cap and small capitalization company stocks tend to perform poorly during times of economic stress. Relative to large capitalization company stocks, the stocks of micro-cap and small capitalization companies are thinly traded, and purchases and sales may result in higher transactions costs.
According to Ibbotson & Associates Classic Yearbook 2014, $1 invested in micro-cap stocks on January 1, 1926 grew to $29,190 by December 31, 2013. $1 invested in small-cap and large-cap stocks grew to $26,641 and $4,677 over the same time period. Microcap stocks defined as the bottom two deciles of securities ranked by market capitalization from 1926-2013.Small-cap stocks defined as deciles 6-8Large company stocks are represented by the S&P 500 index. Source: Ibbotson & Associates Stocks, Bonds, Bills and Inflation Yearbook, 2014.
The views expressed in this article are those of the authors as of the dates of the article. The opinions expressed are subject to change, are not guaranteed and are not intended as a forecast or as a recommendation to buy or sell any security.
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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 1-800-331-8936. 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.