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Big Potential for IRA Investors in SouthernSun Fund

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


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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