Value funds invest in securities that are deemed to be undervalued on the basis of fundamental characteristics. There could be many types of value funds, including small-value funds.
Such funds focus on small companies with valuations and growth rates less than other small-cap companies. We have used the one-year return data of the small value funds (from money.usnews.com) to come up with the following ten best performing small value funds, in reverse order.
10. Undiscovered Managers Behavioral Val Fd (21%)
Undiscovered Managers Behavioral Value Fund Class A (MUTF:UBVAX) invests in common stocks of U.S. companies that the fund manager believes to have value characteristics.
The fund has returned almost 10% in the last three months and over 14% in the last three years. UBVAX has more than $8 billion in total assets. The top five holdings of the fund are: JPMorgan (NYSE:JPM) Prime Money Market IM, Devon Energy (NYSE:DVN), Graphic Packaging Holding (NYSE:GPK), F N B Corp and First Horizon (NYSE:FHN).
9. James Small Cap Fund (21%)
James Small Cap Fund (MUTF:JASCX) primarily invests in equity securities (foreign and domestic) that the fund manager believes to be undervalued.
The fund has returned over 1% in the last three months and almost 11% in the last three years. JASCX has more than $37 million in total assets. The top five holdings of the fund are: Piper Sandler, First American Treasury Obligs X, Boise Cascade (NYSE:BCC), Encore Wire (NASDAQ:WIRE) and Evercore Class A.
8. Hotchkis & Wiley Small Cap Value Fund (22%)
Hotchkis & Wiley Small Cap Value Fund Class A (MUTF:HWSAX) invests in equity securities of small cap companies and uses the Russell 2000® Index to determine the small cap companies.
The fund has returned almost 9% in the last three months and almost 13% in the last three years. HWSAX has more than $590 million in total assets. The top five holdings of the fund are: Range Resources (NYSE:RRC), Popular (NASDAQ:BPOP), Stagwell Class A, Fluor (NYSE:FLR) and The ODP.
7. Bridgeway Omni Tax-Managed Sm-Cp Val Fd (23%)
Bridgeway Omni Tax-managed Small-cap Value Fund Class N (MUTF:BOTSX) primarily invests in diverse small-cap stocks that the fund manager believes to be value stocks. It may also invest in foreign securities.
The fund has returned almost 5% in the last three months and over 13% in the last three years. BOTSX has more than $900 million in total assets. The top five holdings of the fund are: Antero Resources (NYSE:AR), Dillard's (NYSE:DDS) Inc Class A, Signet Jewelers (NYSE:SIG), Herc Holdings (NYSE:HRI) and Century Communities (NYSE:CCS).
6. Bridgeway Small Cap Value Fund (23%)
Bridgeway Small Cap Value Fund (MUTF:BRSVX) uses a statistical approach to select stocks within the small-cap value category. The fund has returned almost 1% in the last three months and over 22% in the last three years.
BRSVX has more than $500 million in total assets. The top five holdings of the fund are: Hovnanian Enterprises (NYSE:HOV), Veritiv (NYSE:VRTV), Clearwater Paper (NYSE:CLW), Rite Aid (NYSE:RAD) and WideOpenWest (NYSE:WOW).
5. WPG Partners Small/Micro Cap Value Fund ( 23%)
WPG Partners Small/Micro Cap Value Fund (MUTF:WPGTX) invests mainly in common stocks, as well as in securities convertible into common stocks, and uses the Russell 2000® Value Index to determine small cap stocks.
The fund has returned over 10% in the last three months and over 14% in the last three years. WPGTX has more than $29 million in total assets. The top five holdings of the fund are: Mosaic (NYSE:MOS), Tronox Holdings PLC Shs Class A, Univar Solutions (NYSE:UNVR), Axis Capital Holdings (NYSE:AXS), and Popular.
4. Bridgeway Omni Small-Cap Value Fund (24%)
Bridgeway Omni Small-cap Value Fund Class N (MUTF:BOSVX) invests in a diverse group of small-cap stocks that the fund manager determines to be value stocks.
The fund has returned over 5% in the last three months and over 14% in the last three years. BOSVX has more than $1.20 billion in total assets. The top five holdings of the fund are: Antero Resources (NYSE:AR), Dillard's (Class A), United Natural Foods (NYSE:UNFI), Signet Jewelers and Herc Holdings.
3. Invesco Small Cap Value Fund (26%)
Invesco Small Cap Value Fund Class A (MUTF:VSCAX) invests in the securities of small capitalization companies, as well as in derivatives and other instruments with similar economic characteristics.
The fund has returned over 12% in the last three months and almost 20% in the last three years. VSCAX has more than $1.90 billion in total assets.
The top five holdings of the fund are: Sterling Bancorp (NASDAQ:SBT), American Equity Investment Life Holding (NYSE:AEL), Huntington Bancshares (NASDAQ:HBAN), ManpowerGroup (NYSE:MAN) and US Foods Holding (NYSE:USFD).
2. Auer Growth Fund (31%)
Auer Growth Fund (MUTF:AUERX) invests in a diversified portfolio of common stocks of companies that report substantial sales and earnings growth. The fund has returned over 12% in the last three months and almost 17% in the last three years.
AUERX has more than $26 million in total assets. The top five holdings of the fund are: VAALCO Energy, Diamondback Energy (NASDAQ:FANG), Encore Wire (NASDAQ:WIRE), AdvanSix (NYSE:ASIX) and USA Truck (NASDAQ:USAK).
1. Aegis Value Fund (34%)
Aegis Value Fund Class I (MUTF:AVALX) invests in small cap companies. The fund has returned almost 15% in the last three months and almost 24% in the last three years. AVALX has more than $230 million in total assets. The top five holdings of the fund are: Amerigo Resources (OTC:ARREF), Interfor (TSX:IFP), Kenmare Resources (LON:KMR), MEG Energy (OTC:MEGEF) and Resolute Forest Products(NYSE:RFP).