Zacks Small-Cap Core Fund Institutional Class (ZSCIX) Fund Overview

Zacks Small-Cap Core Fund Institutional Class (ZSCIX) Financial Services Profile

Zacks Small-Cap Core Fund Institutional Class (ZSCIX) is an asset management vehicle focused on achieving long-term capital appreciation through a diversified portfolio of U.S. small-capitalization equities. It utilizes a dual-faceted research methodology, integrating quantitative and qualitative analysis, while maintaining flexibility for short-sale transactions and investments in Canadian issuers and ADRs.

What Is the Investment Thesis for ZSCIX?

Zacks Small-Cap Core Fund Institutional Class (ZSCIX) aims for long-term capital appreciation by strategically investing in a diversified portfolio of small-capitalization U.S. companies. The fund's core value proposition lies in its dual-faceted research approach, combining quantitative analysis with qualitative assessment, designed to identify fundamentally strong small-cap entities. A significant driver is its mandate to allocate at least 80% of net assets to small-cap equities, positioning it to capitalize on the often-higher growth potential inherent in this market segment. The fund's flexibility to include Canadian issuers and ADRs, alongside its ability to engage in short-sale transactions up to 25% of net assets, provides additional avenues for potential alpha generation and risk management. However, its relatively small market capitalization of $0.03 billion introduces potential vulnerabilities to market volatility and liquidity challenges. Investors may want to evaluate the fund's performance relative to its benchmark and its expense ratio as key metrics for evaluating its effectiveness in achieving its stated objective.

Based on FMP financials and quantitative analysis

ZSCIX Key Highlights

Market Capitalization: $0.03 billion, indicating a relatively small fund size.

• Beta: 1.20, suggesting higher volatility compared to the broader market.
• Dividend Yield: None, as the fund does not distribute dividends.
• Investment Allocation: At least 80% of total net assets are committed to small-capitalization equity securities.
• Short-Sale Flexibility: The fund may engage in short-sale transactions, with positions not exceeding 25% of its net assets.

Who Are ZSCIX's Competitors?

ZSCIX 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 ZSCIX's Key Strengths?

Dedicated focus on long-term capital appreciation within the small-cap segment.

• Robust dual-faceted research methodology combining quantitative and qualitative analysis.
• Diversified portfolio of small-capitalization companies, primarily U.S.-domiciled.
• Flexibility to invest in Canadian issuers and American Depositary Receipts (ADRs).

What Are ZSCIX's Weaknesses?

Relatively small market capitalization ($0.03 billion) may lead to liquidity challenges.

• Higher Beta (1.20) suggests increased sensitivity to market fluctuations.
• Potential for underperformance relative to benchmarks, a common risk for actively managed funds.
• Reliance on the expertise of the fund management team for stock selection and strategy execution.

What Are the Key Risks for ZSCIX?

Market volatility and economic downturns, which can disproportionately affect small-capitalization companies and impact fund performance.

• Liquidity challenges stemming from the fund's relatively small market capitalization of $0.03 billion, potentially affecting trading efficiency.
• Underperformance relative to its benchmark due to active management decisions, leading to investor dissatisfaction and outflows.
• Risks associated with short-sale transactions, including unlimited loss potential if the underlying security price rises significantly.
• Concentration risk within the small-cap sector, despite diversification, as the entire segment can be sensitive to specific economic factors.

What Threats Does ZSCIX Face?

• High market volatility, particularly impacting small-capitalization companies.
• Intense competition from other actively managed small-cap funds and passive index funds/ETFs.
• Economic downturns or adverse market conditions disproportionately affecting small businesses.
• Regulatory changes impacting mutual funds or investment strategies.

What Are ZSCIX's Competitive Advantages?

• Proprietary Dual-Faceted Research Approach: Combines quantitative and qualitative analysis for potentially superior stock selection.
• Specialized Small-Cap Focus: Deep expertise and dedicated resources in a specific market segment.
• Flexible Investment Mandate: Ability to utilize short sales and invest in Canadian/ADR equities for broader opportunities and risk management.
• Institutional Class Structure: Tailored for sophisticated investors, potentially offering specific fee structures or services.

What Does ZSCIX Do?

The Zacks Small-Cap Core Fund Institutional Class (ZSCIX) operates with the primary objective of achieving long-term capital appreciation for its investors. The fund employs a sophisticated, dual-faceted research methodology that integrates both rigorous data-driven quantitative analysis and in-depth qualitative assessment of potential investment opportunities. This comprehensive approach is designed to identify promising small-capitalization companies with strong growth potential. A core tenet of its investment strategy mandates that at least 80% of its total net assets, which includes any capital obtained through borrowing for investment purposes, must be committed to a diverse portfolio of equity securities issued by small-capitalization companies. Within this significant allocation, there is a pronounced focus on shares from U.S.-domiciled entities, reflecting a strategic emphasis on the domestic small-cap market. Beyond its primary U.S. small-cap focus, the fund maintains strategic flexibility to engage in short-sale transactions, provided that such positions do not exceed 25% of its net assets. This capability offers a mechanism for potential hedging or generating returns in declining markets. Furthermore, ZSCIX may broaden its investment universe to include equity securities of Canadian issuers, thereby expanding its geographical diversification within North America. The fund also has the discretion to invest in American Depositary Receipts (ADRs), allowing it exposure to non-U.S. companies that trade on U.S. exchanges, further diversifying its portfolio beyond direct U.S. and Canadian equities. This multi-faceted strategy underscores the fund's commitment to a dynamic and adaptable investment approach within the small-cap segment, catering specifically to institutional investors seeking exposure to this market segment.

What Products and Services Does ZSCIX Offer?

• Aims for long-term capital appreciation for investors.
• Invests primarily in equity securities of small-capitalization companies.
• Commits at least 80% of its total net assets to small-cap equities.
• Focuses strongly on shares from U.S.-domiciled entities.
• Employs a dual-faceted research approach: quantitative analysis and qualitative assessment.
• Maintains flexibility to engage in short-sale transactions (up to 25% of net assets).
• May invest in equity securities of Canadian issuers.
• May invest in American Depositary Receipts (ADRs).

How Does ZSCIX Make Money?

• Generates returns for investors through capital appreciation of its underlying equity holdings.
• Likely earns management fees based on a percentage of assets under management (AUM), typical for institutional class funds.
• Seeks to outperform benchmarks through active stock selection and strategic asset allocation within the small-cap segment.
• Utilizes short-selling capabilities to potentially generate returns in declining markets or hedge against risk.

What Industry Does ZSCIX Operate In?

The Zacks Small-Cap Core Fund Institutional Class operates within the highly competitive asset management industry, specifically targeting the small-capitalization equity segment. This segment is characterized by companies typically possessing higher growth potential but also greater volatility and liquidity risks compared to large-cap counterparts. The broader asset management industry is experiencing trends towards both passive and active strategies, with ZSCIX firmly positioned as an actively managed fund. Its dual-faceted research approach aims to differentiate it from passive small-cap index funds by seeking to outperform through selective stock picking. The fund's focus on U.S.-domiciled small-caps, with flexibility for Canadian issuers and ADRs, places it within a niche that seeks to capitalize on North American growth while offering some international exposure. The competitive landscape includes numerous mutual funds and ETFs also targeting small-cap growth or value, necessitating consistent performance and clear differentiation in strategy.

Who Are ZSCIX's Key Customers?

• Institutional investors (e.g., pension funds, endowments, foundations, corporations).
• High-net-worth individuals via institutional platforms.
• Investment advisors and wealth management firms.

ZSCIX Financials

ZSCIX Latest News

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ZSCIX Analyst Consensus

ZSCIX MoonshotScore

Zacks Small-Cap Core Fund Institutional Class Financials Stock: Key Questions Answered

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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