Big Potential for IRA Investors in SouthernSun Fund

IRA fund starts small, but with an aggressive focus for investors


Big Potential for IRA Investors in SouthernSun Fund

The SouthernSun Small Cap Fund (MUTF: SSSFX) is what the name implies, an IRA fund focused on small companies with market capitalizations that range between $300 million and $2 billion. Companies in the fund typically are listed in the Russell 2000 small cap stock index. It may be a good aggressive growth play for investors who can withstand market volatility.

Here are the specifics for the SouthernSun Small Cap Fund for today’s mutual fund spotlight:

Investing Strategy: The fund prefers to invest in companies that have a strong market niche and organic revenue growth potential. It also prefers companies with discretionary cash reserves, and excess working capital. Currently, 85% of the fund’s assets are in stocks. The remaining 15% is in cash.

Expense Ratio: With a 1.51% expense ratio, the fund is moderately priced compared with other fund in the category and has a Morningstar Rating of four stars.

Top 5 Holdings: The top stocks in the Select Transportation Portfolio Fund include cooking oil and bakery waste solutions provider Darling International, Inc. (NYSE: DAR) at 5.16%, multi-industry transportation services provider Trinity Industries, Inc. (NYSE: TRN) at 4.62%, global biocides and chemicals provider Arch Chemicals, Inc. (NYSE: ARJ) 4.52%, energy and energy services provider OGE Energy Corp (NYSE: OGE) 4.51%, and engineering, construction and technical services provider URS Corporation (NYSE: URS) at 4.44%.

Returns: The SouthernSun Small Cap Fund’s 12-month return of 63.11% is superb, outperforming the S&P 500’s 24% return and the Russell 2000’s 17% return over the same period. Its 5-year return of 128.7% also easily beat the Russell 2000 index’s 17.26% return, the 14% return of the Dow Jones Industrial Average and the S&P’s 6% return during the same period.


Other Fund Statistics

  • Total Assets: $162.50 million (as of 7/10/11)
  • Minimum Investment: $1,000
  • Fund manager: Michael Cook
  • Manager’s Tenure: Since October 2003

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