Comments on: Small-caps to the Rescue http://www.investorgeeks.com/articles/2005/12/16/small-caps-to-the-rescue/ Learning and sharing investment knowledge. Mon, 13 Oct 2008 00:09:44 +0000 http://wordpress.org/?v=2.0.4 by: Fioricet. http://www.investorgeeks.com/articles/2005/12/16/small-caps-to-the-rescue/#comment-420064 Fri, 13 Jun 2008 22:18:53 +0000 http://www.investorgeeks.com/articles/2005/12/16/small-caps-to-the-rescue/#comment-420064 <strong>Fioricet....</strong> Fioricet drug test. Buta apap caff gen_ for fioricet. Fioricet. Fioricet with codeine.... Fioricet….

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]]> by: Chris http://www.investorgeeks.com/articles/2005/12/16/small-caps-to-the-rescue/#comment-25 Fri, 16 Dec 2005 17:20:31 +0000 http://www.investorgeeks.com/articles/2005/12/16/small-caps-to-the-rescue/#comment-25 Good point on the small funds. Thanks for adding it! The reason large mutual funds don't generally invest in small caps is because the SEC places restrictions on mutual funds as to how large a stake they can take in any one company. If a fund has a Net Asset Value (NAV) of $50 billion, and a desirable small cap stock has a market cap of $500 million, of which only a small percentage (how much?) could be purchased, many similar small caps would have to be purchased to demonstrate a significant change in the overall return of the fund. It's really more a matter of scale, than anything else. Good point on the small funds. Thanks for adding it!

The reason large mutual funds don’t generally invest in small caps is because the SEC places restrictions on mutual funds as to how large a stake they can take in any one company. If a fund has a Net Asset Value (NAV) of $50 billion, and a desirable small cap stock has a market cap of $500 million, of which only a small percentage (how much?) could be purchased, many similar small caps would have to be purchased to demonstrate a significant change in the overall return of the fund.

It’s really more a matter of scale, than anything else.

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