Wasatch Micro Cap Fund (WMICX) Stock Analysis

Why this analysis is different

• A 9-signal quantitative MoonshotScore built from filings, insider activity, and market data — computed from the numbers, not from opinion.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

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 $507M, 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 Could Drive WMICX Stock Higher?

Potential for increased investor interest in micro-cap stocks due to economic recovery.

• Continued growth in emerging markets providing opportunities for foreign investments.
• Technological advancements driving innovation and growth in micro-cap companies.

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 the Growth Opportunities for WMICX?

• Expansion into Emerging Markets: WMICX can further capitalize on the growth potential of emerging markets by increasing its allocation to foreign equities. With a current allocation of up to 30%, there is room to explore new and promising micro-cap companies in developing economies. This strategy can provide diversification and access to high-growth opportunities that may not be available in developed markets. The timeline for this expansion is ongoing, as the fund continuously evaluates and adjusts its portfolio based on market conditions and investment opportunities.
• Increased Focus on Undervalued Assets: WMICX can enhance its returns by focusing on identifying and investing in undervalued micro-cap companies. By employing a rigorous fundamental analysis approach, the fund can uncover companies with strong growth potential that are currently trading at a discount to their intrinsic value. This strategy requires a deep understanding of the companies' financials, industry dynamics, and competitive positioning. The timeline for this strategy is ongoing, as the fund continuously screens and evaluates potential investment opportunities.
• Leveraging Technological Advancements: WMICX can improve its investment decision-making process by leveraging technological advancements such as artificial intelligence and machine learning. These technologies can be used to analyze vast amounts of data, identify patterns, and predict future performance. By incorporating these tools into its investment process, the fund can gain a competitive edge and make more informed decisions. The timeline for implementing these technologies is ongoing, as the fund continuously explores and adopts new tools and techniques.
• Strategic Partnerships and Acquisitions: WMICX can expand its reach and capabilities by forming strategic partnerships or acquiring other asset management firms. This can provide access to new markets, investment strategies, and talent. By partnering with or acquiring firms that have complementary expertise, WMICX can enhance its overall value proposition and attract new investors. The timeline for this strategy is medium-term, as the fund actively seeks and evaluates potential partnership and acquisition opportunities.
• Enhanced Investor Education and Communication: WMICX can attract and retain investors by providing enhanced investor education and communication. This includes providing clear and concise information about the fund's investment strategy, performance, and risk profile. By educating investors about the benefits of investing in micro-cap companies and the fund's approach to managing risk, WMICX can build trust and confidence. The timeline for this strategy is ongoing, as the fund continuously improves its communication and education efforts.

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 Valuation & Market Position

Relative to its peer group, WMICX's quantitative score of 46/100 is roughly in line with the peer average of 49/100.

WMICX Financials

WMICX Latest News

No recent news available for WMICX.

WMICX Analyst Consensus

WMICX MoonshotScore

Common Questions About WMICX (Financial Services)

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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