Why the Value Line Small Cap Opportunities Fund?
Portfolio Manager Stephen E. Grant discusses a potentially lower risk way to invest in smaller growth companies.
Hello, I’m Steve Grant, the portfolio manager of the Value Line Small Cap Opportunities Fund since 1998.
Are you looking for a lower risk way to invest in smaller growth companies? If so, consider the Value Line Small Cap Opportunities Fund. Smaller company investing, we believe, doesn’t have to be fraught with excess volatility and surprises. At Value Line, our goal is to deliver above-average results over time with a lower risk profile than our peer group. To us, investing is a careful blend of playing both offense and defense.
Smaller companies are generally deserving of meaningful asset allocations because of their growth characteristics. They tend to be highly focused on their core business and have a longer and often faster growth runway than their mid- and large-cap counterparts. As a result, their stock performance can be quite impressive and reward investors handsomely over time.
At Value Line, we are pleased to offer investors a smaller company fund that, for the past 20 years, has stood the test of time. The Fund’s portfolio is comprised of about 150 companies that have an impressive and proven record of operating results. Generally our holdings have at least a 10 year history of achieving solid growth in both earnings and their stock price. We avoid the high risk, high-flyers and headline grabbing companies. We invest instead in steady-eddy companies that methodically produce results, with the intention of keeping them in the portfolio for many years if their performance stays on course.
With this widely diversified portfolio, our disciplined, repeatable stock selection process drives the Fund’s overall results, rather than the performance of any particular company or industry sector. This important distinction, we believe, reduces the Fund’s risk profile relative to other smaller company funds. At Value Line, we are patient investors and allow our portfolio companies the time to execute their business plans. We value consistency rather than uneven or cyclical operating results and realize that investment success is a long-term endeavor, not a short-term race.
Impressive above-average results, lower risk and a smoother ride over time–that’s our goal.
I’m Steve Grant and thank you for considering the Value Line Small Cap Opportunities Fund.