Journal of Stock & Forex Trading
Open Access
ISSN: 2168-9458
+44 1223 790975
ISSN: 2168-9458
+44 1223 790975
Brian A Lavelle
Lavelle Asset Management,
Tanzania
Review Article
Evaluating the Risk and Risk-Adjusted Performance of Micro-Cap Mutual Funds
Author(s): Brian A LavelleBrian A Lavelle
Few studies explore the micro-cap market of stocks and mutual funds. As a result, little is known about these securities’ characteristics, risks and performance. This study analyzes the risk and risk-adjusted performance of microcap mutual funds with mid-cap and large-cap mutual funds. The study finds that micro-cap mutual funds are riskier and produce a lower Jensen’s alpha than those of mid-cap and large-cap mutual funds. In addition, the author provides a comprehensive literature review and suggests potential explanations for the growing evidence that micro-cap mutual funds are poor investments. .. View More»
DOI:
10.4172/2168-9458.1000180