This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

3 Small Growth Funds With Steady Results

Another holding is Brocade Communications Systems (BRCD - Get Report), which makes routers and switches that are used for networking systems. After struggling in recent years, the company introduced new products that are gaining traction with customers. Earnings have been increasing at a rate of more than 20%, but the shares sell for a forward P/E of only 11.

Kalmar Growth-With-Value Small Cap

Another solid fund is Kalmar Growth-With-Value Small Cap, which has returned 7.3% annually during the past five years, outdoing 72% of competitors. Portfolio manager Ford Draper looks for companies that seem poised to increase sales 10% or more annually for a sustained period. The steady businesses helped the fund outdo most competitors during the 2008 downturn. Many of Kalmar's holdings are increasing earnings at rates of more than 15%. But Draper is not willing to pay sky-high multiples. To find reasonable prices, he looks for companies that been overlooked or misunderstood.

A holding is LKQ (LKQX) , which supplies parts that are used to repair cars and trucks. Big customers include auto body shops that buy bumpers, body panels and lights. Sales grew during the recession as drivers repaired old cars instead of buying new ones.

Another holding that grew through the recession is Ulta Salon, Cosmetics & Fragrance (ULTA - Get Report), a retailer. The chain offers a wide selection that ranges from the top prestige brands to mass-market products. The standalone stores offer an alternative to department stores. "Ulta has better values and better selection," says Draper. "They have 390 stores, and they can probably expand until they have 1,000 or 1,200."

Oppenheimer Discovery

Oppenheimer Discovery has achieved a solid record by favoring high-growth stocks that are typically increasing revenues at annual rates of 25% or more. Such stocks can be volatile, but portfolio manager Ron Zibelli limits risk by sticking with very high-quality companies. His holdings have strong balance sheets and dominant market positions. Many are the top players in their industries. Zibelli also controls risk by staying broadly diversified, roughly matching the sector weightings of the benchmark. He never puts more than 2% of assets in any one stock. The careful approach excels in downturns and enabled the fund to return 8.8% annually during the past five years, outdoing 88% of peers.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
BRCD $11.46 -0.91%
FORM $8.75 -2.20%
HMSY $15.32 -3.50%
PPO $58.98 -0.07%
ULTA $151.21 0.80%

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs