Making Headlines

InvestmentNews reporter David Hoffman takes a closer look at the micro-cap asset class in the article entitled, "Micro-Cap Funds May Present an Opportunity."

He claims that micro-cap stocks have been beaten down "to the point where the mutual funds that invest in them are starting to see new opportunities." According to Hoffman's Lipper source, "only 47 funds invest specifically in micro-cap stocks…compared to 552 funds that invest in small-cap stocks."

Hoffman cites Royce Micro-Cap Fund (RYOTX) as a micro-cap fund with a solid long-term track record, while reminding readers that the micro-cap asset class as a whole can be "volatile" with "limited liquidity."