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A Solid Small-Cap Option Gets an Upgrade

JPMorgan Small Cap Equity, which is closed to new investors, was recently upgraded to Silver.


Christopher Franz: We recently upgraded JPMorgan Small Cap Equity to Silver from Bronze due to the strength of its lead manager and investment process. Don San Jose has managed the fund since 2007 and took over as lead in early 2013. Alongside a compact supporting team of three seasoned analysts, San Jose seeks small-cap companies with durable competitive advantages and sustainable cash flows, usually between $1 billion and $3 billion in market cap. 

This search for stability leads the team to favor areas such as industrials and materials over more speculative areas like biotech, which combined with a low-turnover approach, gives the fund a larger-cap bent and heavier exposure to firms with Morningstar Economic Moat Ratings, relative to small-cap peers. 

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