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Saturday Screen: Micro-Cap Funds You Can Still Get Into

 

Micro-cap stocks combine big risks, big potential returns and, sometimes, attractive prices. Break out your magnifying glass, because today we're looking at funds that feast on them.

No, micro-caps aren't tiny hats. They're small and often young companies with market capitalizations of $325 million or less, at least according to Morningstar's definition. Over the long term, studies show they've posted higher returns than large-cap stocks, but their fledgling nature makes them much more risky.

Micro-caps look a bit less risky than they used to, though. The market's obsession with large-cap growth stocks, and tech stocks in particular, in recent years, has left many small- and micro-cap stocks with attractive valuations. That has some managers licking their chops. ...

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