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By Katie Rushkewicz Reichart, CFA | 06-17-2010 10:48 AM

Small Cap Picks for the Long Haul

Wasatch Small Cap Growth's Jeff Cardon discusses some of the fund's longer-term holdings, investment criteria, and new purchases.

Katie Rushkewicz: I am Katie Rushkewicz with Morningstar. I'm here with Jeff Cardon of Wasatch Small Cap Growth. Thanks for being here, Jeff.

Jeff Cardon: It's great to be here Katie, thanks.

Rushkewicz: About 17% of the fund is invested in foreign stocks. I know that Wasatch has expanded internationally, its international efforts over the years. Can you talk a little bit about that?

Cardon: Well, you know it really started way back when maybe 15 years ago, we've invested in companies that traded on the American stock exchanges that were foreign, and over the years, what we found is that more of our domestic companies were competing on a global basis. And we felt that to be a world class investor, you really had to understand what was going on internationally.

And so, we've spent a lot of time and money building up what we think is a world class international team, and we like to leverage that team so that we can really get a feel for what's happening here in the United States, but in addition, we also think that there is great opportunity overseas. And we've always really struggled with the idea that borders mean a lot in terms of investing, because we have American companies that are traded in America who do most of their business overseas. And so, there is a big gray area, and we've really fought hard against thinking of the world in terms of black and white, and think of it as more gray. And we just go out and try to find the best growth companies that there are in America, and we do it consistent with our policy of our fund, but if we can we'll find the best companies anywhere and invest in them. So that's really what our investment philosophy is internationally.

Rushkewicz: Domestically speaking, Hibbett Sports has been in the fund for years, why is it such a great long-term holding?

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