Advertisement
investing

Mother-and-Daughter Fund-Manager Team Scores With Micro Caps

This unique managerial pair invest in tiny, growing companies that trade at reasonable prices.

Early this year, the managers of Paradigm Micro Cap (PVIVX) faced a tough choice: what to do about circuit board maker TTM Technologies, a big holding. The stock had dipped below $5, off more than 50% from its 2015 high. After speaking with TTM officials and reviewing the firm’s finances, the choice was clear: The managers bought more shares. It was a smart move; the stock has soared 140% from its low.

The decision wasn’t a surprising one for Candace and Amelia Weir, likely the only mother-daughter manager team in the fund business. TTM’s plunge coincided with a broad market sell-off. When the Weirs concluded that the stock’s fall was more a result of market forces than a change in TTM’s prospects, they saw a chance to buy a stock they liked at a fire-sale price. (For more on the Weirs, see What This Mother-Daughter Fund-Manager Team Can Teach Us About Investing).

Advertisement - Article continues below

The Weirs focus on companies with market values of less than $1.4 billion. They invest mainly in technology, industrial, retail and health care stocks, seeking growing firms that trade at fair prices, generate a lot of free cash flow (cash profits after capital outlays) and carry little debt. Micro caps carry above-average risk. In early October, six of Paradigm’s 41 holdings traded for less than $5, putting them in penny-stock territory. Over the past three years, the fund has been 26% more volatile than the average small-company stock fund.

K12I-FUNDTRENDS_RANKINGS.indd
K12I-FUNDTRENDS_RANKINGS.indd

Thinkstock

Advertisement

Most Popular

What Are the Income Tax Brackets for 2020 vs. 2019?
tax brackets

What Are the Income Tax Brackets for 2020 vs. 2019?

The IRS unveiled the 2020 tax brackets, and it's never too early to start planning to minimize your future tax bill.
June 20, 2020
HSAs Get Even Better
Financial Planning

HSAs Get Even Better

Workers have more options with flexible spending accounts, too.
July 2, 2020
17 States That Will Gain or Lose Electoral-College Votes After the 2020 Census
Politics

17 States That Will Gain or Lose Electoral-College Votes After the 2020 Census

Every 10 years, the 435 seats in the House of Representatives are reassigned based on the results of the U.S.
July 2, 2020

Recommended

3 Municipal Bond Funds for Rich, Tax-Friendly Yields
Investing for Income

3 Municipal Bond Funds for Rich, Tax-Friendly Yields

Municipal bond funds allow you to enjoy the benefits of tax-exempt income. By investing CEFs, you can sweeten the pot even further.
July 2, 2020
10 Stocks to Invest in the Health Care Revolution
healthcare stocks

10 Stocks to Invest in the Health Care Revolution

These companies are fighting disease and improving our standard of care.
July 2, 2020
Is the Stock Market Closed for the Fourth of July?
Markets

Is the Stock Market Closed for the Fourth of July?

Independence Day falls on a Saturday in 2020. As a result, the bond and stock markets are closed for a long holiday weekend. Here's a look at the mark…
July 2, 2020
Cash In With This Gaming ETF
Technology

Cash In With This Gaming ETF

Cash in on the video gaming craze with this fund.
July 1, 2020