Wasatch Ultra Growth (WAMCX) Fund Overview

Wasatch Ultra Growth (WAMCX) Financial Services Profile

Wasatch Ultra Growth (WAMCX) is a mutual fund specializing in the equity of smaller, fast-growing companies, aiming for rapid earnings per share increases. It strategically allocates up to 30% of assets internationally and concentrates holdings in sectors such as information technology, healthcare, and financials, leveraging an experienced management team for active stock selection.

What Is the Investment Thesis for WAMCX?

Wasatch Ultra Growth (WAMCX) presents an investment thesis centered on its specialized approach to identifying and capitalizing on high-growth opportunities within the small and mid-cap equity markets. The fund's core value driver is its experienced management team, which possesses a long track record in growth investing and employs an active stock selection strategy to target companies poised for rapid earnings per share increases. This proactive approach aims to uncover undervalued businesses with significant upside potential, differentiating it from passive investment vehicles. Growth catalysts include the fund's ability to allocate up to 30% of its assets to international companies, expanding its opportunity set, and its strategic concentration in high-growth sectors like information technology and healthcare, which can amplify returns during periods of strong sector performance. However, the thesis also acknowledges inherent risks. The fund's focus on smaller companies means it is exposed to higher volatility and greater susceptibility to market fluctuations compared to funds investing in larger, more established businesses. Additionally, the concentrated nature of its portfolio in specific sectors introduces concentration risk. Investors should closely monitor the fund's portfolio turnover, as higher turnover can impact transaction costs and tax efficiency, and critically assess its performance relative to its benchmark index to gauge the effectiveness of its active management strategy. The fund's beta of 1.55 underscores its higher sensitivity to market movements, a key consideration for risk-adjusted returns.

Based on FMP financials and quantitative analysis

WAMCX Key Highlights

Market Capitalization of $0.22 billion, indicating its position as a smaller fund within the asset management industry.

• Beta of 1.55, suggesting the fund's portfolio exhibits higher volatility and sensitivity to broader market movements.
• No dividend yield, as the fund's strategy is focused on capital appreciation rather than income distribution.
• Investment focus primarily on smaller, fast-growing companies, targeting those with potential for rapid earnings per share increases.
• Strategic flexibility to invest up to 30% of its total assets in international companies, broadening its growth opportunity set.

Who Are WAMCX's Competitors?

WAMCX is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are WAMCX's Key Strengths?

Experienced management team with a long track record in growth investing.

• Disciplined active stock selection strategy focused on rapid EPS growth.
• Strategic flexibility to invest up to 30% of assets in international companies.
• Ability to concentrate holdings in high-potential sectors, leveraging deep industry expertise.

What Are WAMCX's Weaknesses?

Inherent higher volatility due to a primary focus on smaller companies.

• Susceptibility to market fluctuations, which can disproportionately impact small-cap holdings.
• Potential for concentration risk stemming from heavy allocation to a select few sectors.
• Need for continuous monitoring of portfolio turnover, which can affect costs and tax efficiency.

What Are the Key Risks for WAMCX?

Higher volatility inherent in small and mid-cap investments, which can lead to more significant price fluctuations compared to large-cap funds.

• Susceptibility to broader market fluctuations and economic downturns, as smaller companies are often more sensitive to adverse economic conditions.
• Underperformance relative to its benchmark index, which could result from incorrect stock selections or adverse market movements impacting its concentrated holdings.
• Risks associated with high portfolio turnover, including increased transaction costs and potential for reduced tax efficiency for investors.
• Concentration risk stemming from significant holdings in a few specific sectors, making the fund more vulnerable to downturns in those industries.

What Threats Does WAMCX Face?

• Economic downturns or recessions that disproportionately impact smaller, growth-oriented companies.
• Increased market volatility or shifts in investor sentiment away from growth stocks.
• Underperformance relative to its benchmark index or peer funds, leading to investor outflows.
• Intensified competition from other active and passive small/mid-cap growth funds.

What Are WAMCX's Competitive Advantages?

• Experienced management team with a long track record in growth investing, providing specialized expertise.
• Proprietary active stock selection process focused on identifying undervalued small and mid-cap companies with high EPS growth potential.
• Strategic flexibility to invest up to 30% in international markets, broadening the universe of growth opportunities.
• Deep domain expertise developed through concentrated holdings in specific high-growth sectors.

What Does WAMCX Do?

Wasatch Ultra Growth (WAMCX) is a mutual fund headquartered in Salt Lake City, US, dedicated to identifying and investing in the equity of smaller, rapidly expanding companies. Established with a strategic focus on firms exhibiting high growth potential, the fund's management team employs a rigorous active stock selection process. This approach specifically targets companies anticipated to achieve substantial and consistent increases in earnings per share (EPS), a key indicator of underlying business strength and future value creation. The fund's investment universe is not confined solely to domestic markets; it maintains the flexibility to allocate up to 30% of its total assets to international companies at the point of acquisition, thereby broadening its scope for growth opportunities beyond U.S. borders. The investment philosophy of WAMCX is rooted in the belief that smaller companies, often overlooked by larger institutional investors, can offer superior growth trajectories. The fund's portfolio may exhibit a notable concentration in a select few sectors, a deliberate strategy designed to capitalize on specific industry trends and dynamics. Historically, these concentrated sectors have encompassed high-growth areas such as information technology, healthcare, consumer discretionary, financials, and industrials. This sector-focused approach allows the experienced management team to develop deep expertise within these industries, facilitating a more informed and potentially advantageous stock selection process. By targeting companies believed to be undervalued relative to their robust growth prospects, Wasatch Ultra Growth aims to deliver long-term capital appreciation for its investors, leveraging its specialized knowledge in the small and mid-cap growth segment. The fund's operational model emphasizes continuous research and fundamental analysis to uncover promising enterprises that align with its stringent growth criteria.

What Products and Services Does WAMCX Offer?

• Primarily invests in the equity of smaller, fast-growing companies.
• Targets firms expected to achieve rapid increases in earnings per share.
• Employs an active stock selection strategy to identify undervalued growth prospects.
• Allocates up to 30% of its total assets to international companies.
• May heavily concentrate its portfolio holdings in specific sectors.
• Historically focuses on sectors including information technology, healthcare, consumer discretionary, financials, and industrials.
• Manages a mutual fund focused on small and mid-cap companies with high growth potential.

How Does WAMCX Make Money?

• Generates returns for its investors by investing in the equity of smaller, fast-growing companies.
• Aims to achieve capital appreciation through active stock selection, targeting firms with rapid EPS growth.
• Seeks to identify and invest in companies believed to be undervalued relative to their growth prospects.
• Utilizes strategic sector concentration and international allocation to enhance potential returns.

What Industry Does WAMCX Operate In?

Wasatch Ultra Growth operates within the dynamic and competitive asset management industry, specifically targeting the small and mid-cap growth equity segment. This niche is characterized by a pursuit of companies with above-average earnings growth potential, often driven by innovation, market disruption, or early-stage expansion. The broader asset management sector is currently influenced by trends such as the increasing demand for specialized investment strategies, the ongoing debate between active and passive management, and the growing interest in global diversification. WAMCX positions itself as an active manager, seeking to outperform market indices through diligent stock selection, contrasting with the proliferation of low-cost passive funds. The competitive landscape for small and mid-cap growth funds includes numerous mutual funds and exchange-traded funds (ETFs) offered by both boutique asset managers and large financial institutions. WAMCX differentiates itself through its experienced management team and its disciplined approach to identifying companies with rapid EPS growth, coupled with the strategic flexibility to invest internationally and concentrate holdings in high-conviction sectors. While the overall asset management industry faces pressures from fee compression and regulatory scrutiny, funds like WAMCX that demonstrate consistent outperformance and specialized expertise can attract significant capital from investors seeking differentiated growth exposure.

Who Are WAMCX's Key Customers?

• Individual investors seeking exposure to small and mid-cap growth equities.
• Institutional investors, such as endowments, foundations, and pension funds, looking for specialized growth strategies.
• Financial advisors and wealth managers who allocate client assets to actively managed growth funds.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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