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SEI Instl Small Cap Growth Looks Limp

Tech sales can't save SEI Instl Small Cap Growth.


The Nasdaq meltdown has made SEI Instl Small Cap Growth Fund (SSCGX) look a little worse for wear these days. Its 12-month loss of 43% lags the small-growth category average by a fairly wide margin. Although its subadvisors did cut back tech last year, its exposure to that sector took its toll, and management couldn't get out of everything in time before some of the stocks cracked. Indeed, the fund lost more than its average peer did in the Nasdaq's fourth-quarter sell-off.

SEI's Larry Vasquez, who oversees this portfolio for the firm, says the fund's subadvisors are replacing those tech stocks with stocks in the energy and retailing areas. That positioning is helping the fund in 2001. However, don't expect this fund to back completely away from high-octane stocks. Management added to the fund's pharmaceutical and biotech stake in 2000, and though those stocks have tumbled so far this year, Vasquez says they still are among the fund's top holdings.

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