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A Deep-Value Small-Cap Fund

A Deep-Value Small-Cap Fund
Securities In This Article
LSV Small Cap Value Investor

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.

The team that supports this, and all other strategies at LSV, consists of 12 investment professionals. Among them are 3 Ph.D.’s, 14 master’s degrees, and 6 CFA designations. They have an average of more than 13 years of experience at LSV and more than 20 years of industry experience. Their academic credentials and long-tenured staff have rewarded investors over time by implementing their disciplined process and delivering superior results over a full market cycle.

Finally, this fund has a reasonable price tag. Overall, its proven process, impressive bench, and fair fees contribute to our confidence in this fund’s ability to continue to benefit investors over the long term.

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About the Author

Linda Abu Mushrefova

Senior Product Manager, ETF's
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Linda Abu Mushrefova, CFA, is a manager research analyst for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. She covers equity strategies.

Before rejoining Morningstar in 2017, Mushrefova was an analyst on the fixed-income team at Neuberger Berman, covering opportunistic strategies. From 2013-16, she held a variety of roles at Morningstar, including as a product consultant and a data analyst for the firm's open-end and hedge fund databases.

Mushrefova holds a bachelor's degree in economics from Northwestern University. She also holds the Chartered Financial Analyst® designation.

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