The Best Investments for the Next Decade: Paradigm Micro-Cap Fund (PVIVX)
If you’re going to invest in actively managed mutual funds, it’s my opinion that you’re best off seeking out funds whose holdings are in smaller companies where hands-on management might be able to make a difference, unlike large-cap stocks that are covered by the entire universe of stock analysts.
A small fund in a sea of large ones is the Paradigm Micro-Cap Fund (MUTF:PVIVX), operated by a mother-and-daughter investment team from Albany, New York, who opened the fund back in January 2008. Today, it has $41 million in assets under management and is routinely at the top of the Morningstar performance charts.
Top holdings include the likes of Extreme Networks, Inc (NASDAQ:EXTR) and Oclaro, Inc. (NASDAQ:OCLR). Honestly, unless you follow small- and micro-cap stocks carefully, you probably won’t be familiar with many of the stocks in this fund.
Candace King Weir (mother) and Amanda Weir (daughter) — thought to be the only mother-and-daughter team in the mutual fund business — get paid handsomely (MER of 1.25%) to follow micro-caps for you. And delivered nicely for their clients. Since inception, Paradigm Micro-Cap has delivered an annualized total return of 8.2% (as of March 31, 2017) — 124 basis points greater than the Russell Microcap Index.
Who said women don’t know how to invest? Not me, that’s far darn sure.