Fuller & Thaler Behavioral Small-Cap Equity Fund focuses on small-cap stocks, leveraging behavioral finance principles to identify mispriced securities. The fund's unique approach combines quantitative analysis with insights into investor psychology, aiming to exploit market inefficiencies primarily in the U.S. small-cap sector.
The fund generates revenue primarily through management fees charged on AUM, which is a common practice in asset management. Its behavioral finance strategy allows it to identify undervalued stocks, providing a competitive edge in the small-cap market. The fund's focus on behavioral biases helps in capitalizing on market inefficiencies, enhancing its pricing power.
Changes in AUM driven by investor inflows or outflows
Performance relative to small-cap benchmarks (e.g., Russell 2000)
Market sentiment towards small-cap equities
Regulatory changes affecting asset management fees
Increased regulatory scrutiny on asset management fees and practices
Technological disruption in investment management (e.g., robo-advisors)
Intensifying competition from passive investment vehicles and ETFs
Market share loss to larger asset managers with lower fees
Liquidity risk if significant investor redemptions occur
Operational risk associated with reliance on key personnel
high - small-cap stocks typically outperform during economic expansions as they are more sensitive to domestic economic growth.
Rising interest rates can impact the fund's performance by increasing borrowing costs for small-cap companies, potentially reducing their growth prospects and affecting stock valuations.
minimal - the fund's operations are not heavily reliant on credit markets.
growth - the fund appeals to investors seeking capital appreciation through small-cap equity exposure.
moderate - small-cap stocks typically exhibit higher volatility than large-cap stocks, but the fund's strategy aims to mitigate some of this through behavioral insights.