RS Small Cap Growth ARSEGX

Morningstar Rating

Fund Research and Analysis

by Ryan Leggio

RS Small Cap Growth has shed its main drawback.

Until now, this fund had been prohibitively expensive. Its current expense ratio is 1.51%, according to RS. But as of Jan. 1, 2010, RS has contractually agreed to reduce its management fee to 1.35% through Read more

Kudos

Fund has excelled in markets where aggressive growth stocks shine.

Experienced management, backed by ample research staff.

Recent fee reduction makes the fund much more competitive. Read more

Risks

Focus on small firms in fast-changing industries ties the fund's fortunes to companies that often cope with rapid change and the threats of obsolescence and funding shortfalls, among other hurdles.

Focus on high-priced stocks exposes the fund to considerable downside risk if management's picks disappoint. Read more

Strategy

The team here looks for companies growing revenues or earnings at 20% or better per year. Among those, the team prefers firms with proprietary advantages that give it an edge over rivals, strong management Read more

Management

In January 2007, RS named Steve Bishop, Scott Tracy, Allison Thacker, and Melissa Chadwick-Dunn comanagers. Jim Callinan, the leader of this fund since 1996, became an analyst on the fund in March 2009. Although they are new to portfolio management, Read more

Inside Scoop

This fund is fraught with risk but is capable of providing glittering rewards. It buys fast-growing small- and mid-cap firms, often frequenting the tech sector. It has endured Read more

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