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A Deep-Value Small-Cap Fund

LSV Small Cap Value's disciplined process, deep bench, and reasonable fees gives us confidence it can continue to benefit investors over the long haul.

Linda Abu Mushrefova
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For investors seeking deep-value small-cap exposure, LSV Small Cap Value is an attractive choice. The fund earns a Morningstar Analyst Rating of Silver for its disciplined process and the depth of its bench.

A systematic approach rooted in academic research is used to try and identify attractively valued, small-cap names. Their model is run daily and looks for small-cap names with attractive earnings and valuations but that have recently underperformed. While the model is run daily, the team trades far less frequently and their long-term approach results in turnover that is well below its average small-value Morningstar Category peer. The team’s approach also pushes it into deep-value territory and results in above-average standard deviation relative to peers. Despite its higher risk profile, the fund has consistently delivered attractive risk-adjusted results over the long haul.

Linda Abu Mushrefova does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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