Top Fund Manager Eyes Small-Caps

John E. Deysher, whose Pinnacle Value Fund has outperformed 99% of its peers year-to-date and over the past year, three years, and five years, tells Barron’s that he’s been putting more cash to work, and says to look for a big bounce from small-cap stocks as the economy recovers. “Current stock prices reflect pretty dire economic circumstances,” Deysher said. “But, in general, businesses have been very responsible. They are bringing down inventories. They are paying off debt. U.S. corporations are going to be well-prepared for the ultimate uptick in consumer demand, whether it is six months from now or 18 […]

Values Abound in Small-Caps

In this week’s Validea Hot List newsletter, John Reese says that his Guru Strategy computer models are finding an array of values among small-cap stocks, particularly among those that would be considered small-cap growth firms. Reese’s Hot List portfolio added eight new stocks on his regularly scheduled rebalancing, all but one of which are in the small-cap growth category — one of the market’s most beaten-down areas of late. For 2008, Reese notes, small-cap growth has been the second-worst performer among the nine size/style categories, according to Morningstar. Small-cap growth funds have lost almost 45 percent on average, with only […]