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Wasatch Small Cap Growth Is Riding High

A tame tech stake is helping this small-growth fund best its peers.

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Wasatch Small Cap Growth Fund (WAAEX) is reaping the rewards of its disciplined approach in 2000.  

After losing out to its more-aggressive peers last year, this offering is being rewarded in 2000 for its attention to valuations. With manager Jeff Cardon wary of the sky-high valuations that many small-cap technology shares were commanding, he brought the portfolio into 2000 with a relatively modest 25% stake in the sector. That was a huge boon to performance last spring when the technology sector started coming under assault. The fund didn't escape the period unscathed, but its 11% drop from March through May 2000 was less than half that of its average rival in the small-growth category. And with the tech sector slipping again this fall, the fund's loss for the three months ended November 2000 is again less than half that of its typical rival's.  

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Bradley Sweeney does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.