The Brown Capital Management Small Company Fund reopening

[mrbilbobaggins]

Credit to MFO poster


www.mutualfundobserver.com/discuss/discussion/60985/the-brown-capital-management-small-company-fund-reopening-to-new-investors

[Fearchar]

I bought shares many years ago.
They had a great run, became very popular and closed.
This was back when growth funds were the funds to own.

While owning the fund, I noticed they were lagging in performance.
Started reviewing individual holding to see what they held.
Turnover was low, but their holdings were only so so.
So, I sold out in early January 2022; just before they dropped like a rock.
Glad I did, but no intention of buying back in.

According to Morningstar, they have seriously negative alpha over the last 3 and 5 years (-12.7% and -7.6%)
Also negative alpha over 10 years (-2.4%).


I held on to some PRGTX; T.Rowe Price Global Tech.
They also have negative 3 year alpha -11%.
Not so bad 5 year -1.72% and are actually positive 10 year at 6.16%.
So, while I made a mistake holding, my impression is that it's a better fund than BCSIX.

Overall, I'm bearish on equity right now and looking forward to everything going on a sale! 

[chang]

I also made a packet on BCSSX, but I sold it on 2/1/2021:
big-bang-investors.proboards.com/post/1919/thread

I actually kept 1 share, but sold that on 4/23/2021:
big-bang-investors.proboards.com/post/4387/thread

Now that I am retired, I decided that I don't need to own small caps (or mid caps). So I just don't pay attention to those spaces anymore. As far as I could tell, they bring significant added volatility, with an uncertain return advantage. If I had a 50 year investment horizon I would probably include small caps in my AA, but at age sixty, I don't think I need them.

[Deleted]

I still hold POAGX and GISYX, smidcap growth funds in my Roth. My guess is at my age, they will pass on to younger heirs. Plus I like having some counterweight to my dividend/value holdings.

[chang]

Apr 21, 2023 12:47:14 GMT @django said:

I still hold POAGX and GISYX, smidcap growth funds in my Roth. My guess is at my age, they will pass on to younger heirs. Plus I like having some counterweight to my dividend/value holdings.

As growth funds go, I believe these are among the best. Never owned POAGX, but long time owner of VHCAX, and I still buy $25k every year (the max. allowed). I owned several GP funds but I let them all go, going into the growth crash. I still believe they have talent. My GGSYX did very well as LCG soared. Also GPMCX. But today I am content with LCG only -- like you, in my Roth (and a little more in my Trads).