Wasatch Micro Cap Fund (WMICX) Fund Overview

Wasatch Micro Cap Fund (WMICX) Financial Services Profile

Wasatch Micro Cap Fund (WMICX) is an asset management firm specializing in micro-capitalization companies, targeting firms with market caps below $1.5 billion or the Russell Microcap® Index's largest constituent. The fund strategically allocates up to 30% of its assets to foreign equities, seeking global growth opportunities within the micro-cap space.

What Is the Investment Thesis for WMICX?

Wasatch Micro Cap Fund presents an investment opportunity for those seeking exposure to the micro-capitalization segment, with a focus on long-term capital appreciation. The fund's strategy of investing in companies with market caps below $1.5 billion offers the potential for significant growth, as these smaller companies often have more room to expand compared to larger, more established firms. The ability to invest up to 30% of its assets in foreign equities provides diversification and access to international markets. However, the fund's beta of 1.46 indicates higher volatility compared to the market, which could lead to greater fluctuations in returns. The absence of a dividend yield may deter income-seeking investors. The fund's success hinges on the adviser's ability to identify and select promising micro-cap companies, both domestically and internationally, and navigate the inherent risks associated with this segment of the market.

Based on FMP financials and quantitative analysis

WMICX Key Highlights

Market capitalization of $0.44 billion, reflecting its focus on micro-cap companies.

• Beta of 1.46, indicating higher volatility compared to the broader market.
• No dividend yield, suggesting a focus on capital appreciation rather than income generation.
• Invests at least 80% of net assets in equity securities of micro-capitalization companies.
• May invest up to 30% of total assets in equity securities issued by foreign companies.

Who Are WMICX's Competitors?

WMICX 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 WMICX's Key Strengths?

Focus on micro-cap companies with high growth potential.

• Ability to invest in foreign equities for diversification.
• Experienced investment team.
• Disciplined investment process.

What Are WMICX's Weaknesses?

Higher volatility compared to larger market segments.

• Dependence on the performance of micro-cap stocks.
• Lack of dividend yield may deter some investors.
• Smaller AUM compared to larger asset management firms.

What Are the Key Risks for WMICX?

Economic downturns can negatively impact micro-cap companies.

• Increased competition from other asset management firms.
• Regulatory changes can impact investment strategies.
• Market volatility can lead to fluctuations in returns.
• Micro-cap companies are inherently riskier than large-cap companies due to limited resources and shorter operating histories.

What Are WMICX's Competitive Advantages?

• Experienced investment team with expertise in micro-cap investing.
• Disciplined investment process focused on fundamental analysis.
• Access to a wide range of micro-cap companies, both domestic and international.

What Does WMICX Do?

Wasatch Micro Cap Fund (WMICX) is an investment fund focused on generating capital appreciation by investing primarily in the equity securities of micro-capitalization companies. The fund's strategy involves allocating at least 80% of its net assets, plus borrowings for investment purposes, into the common stock of these smaller companies. The adviser defines a micro-capitalization company as one with a market capitalization less than the larger of $1.5 billion or the market capitalization of the largest company in the Russell Microcap® Index at the time of purchase. WMICX may also invest up to 30% of its total assets in equity securities issued by foreign companies, allowing it to tap into international micro-cap opportunities. This approach provides diversification and exposure to potentially high-growth companies outside the United States. The fund operates within the asset management sector, aiming to deliver returns by identifying and investing in undervalued or underappreciated micro-cap stocks. Headquartered in Salt Lake City, the fund is managed by an experienced team of investment professionals who conduct thorough research and analysis to select companies with strong growth potential. The fund's investment decisions are guided by a disciplined approach, focusing on factors such as financial health, management quality, and competitive positioning within their respective industries.

What Products and Services Does WMICX Offer?

• Invests in equity securities of micro-capitalization companies.
• Focuses on companies with market caps below $1.5 billion or the largest company in the Russell Microcap® Index.
• Allocates at least 80% of net assets to micro-cap companies.
• May invest up to 30% of total assets in foreign equities.
• Aims to generate capital appreciation through investments in smaller companies.
• Conducts research and analysis to identify promising micro-cap stocks.

How Does WMICX Make Money?

• Generates revenue through management fees charged on assets under management (AUM).
• AUM increases through capital appreciation of investments and new investor contributions.
• Expenses include investment management fees, administrative costs, and marketing expenses.

What Industry Does WMICX Operate In?

Wasatch Micro Cap Fund operates within the asset management industry, which is characterized by intense competition and evolving market dynamics. The fund focuses on the micro-capitalization segment, which offers the potential for high growth but also carries higher risks compared to larger market segments. The competitive landscape includes other asset management firms that also specialize in micro-cap investments, such as BTIEX, GLRBX, HNASX, NMVLX, and NNLEX. The industry is influenced by macroeconomic factors, investor sentiment, and regulatory changes, all of which can impact the performance of micro-cap stocks.

Who Are WMICX's Key Customers?

• Individual investors seeking exposure to micro-cap stocks.
• Institutional investors looking for diversification and potential growth.
• Financial advisors seeking investment options for their clients.

WMICX Financials

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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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