Research

White Paper – The Micro-Cap Advantage: How MicroCap Equities Help Enhance Return and Lower Correlation in Client Portfolios

Click here for Perritt Capital Management Founder Dr. Gerald W. Perritt's white paper on The Micro-Cap Advantage. 

Ibbotson Study – Impact of Illiquid Securities

Click here for Ibbotson Finds Liquidity Rules, a Financial Advisor Magazine feature of a working paper by Roger Ibbotson and Zhiwu Chen demonstrating the positive historical impact of illiquid securities on investor returns.

Small Cap as an Alternative to Private Equity – The Brandes Institute

Click here for a study by The Brandes Institute demonstrating how small cap equity can offer investors a viable alternative to private equity. Is U.S. Small Cap a Viable Alternative to U.S. Private Equity? Bruce Grantier, The Brandes Institute, April, 2009.

Micro Caps + Informational Inefficiency = Active Opportunities – The Journal of Indexes

Click here for a white paper by The Journal of Indexes demonstrating the potential advantage micro-cap investors can gain from the informational inefficiency of the micro cap asset class. Micro Caps + Informational Inefficiency Active Opportunities. Steve Swartley, The Journal of Indexes, July/August 2010.

Mutual fund investing involves risk. Principal loss is possible. The Funds invest in smaller companies, which involve additional risks such as limited liquidity and greater volatility. The Funds invest in micro cap companies which tend to perform poorly during times of economic stress. The Emerging Opportunities Fund may invest in early stage companies which tend to be more volatile and somewhat more speculative than investments in more established companies.

A correlation coefficient is a measure of the interdependence of two random variables that ranges in value from -1 to +1, indicating perfect negative correlation at -1, absence of correlation at zero, and perfect positive correlation at +1.