Friess Small Cap Composite Ranks Among “Top Guns”

The Friess Small Cap Composite earned “Top Guns” status for ranking among the top 10 small capitalization growth managers in the PSN investment manager database’s 5-star and 6-star categories for results through December 2019. The Composite represents the collective performance of separate small-cap portfolios managed by Friess Associates.

Investment products in the 5-star category must have an R-Squared of 0.80 or greater relative to the style benchmark for the recent five-year period. Products must also deliver returns greater than the style benchmark for the three latest three-year rolling periods. From there, the category is further focused to include only products with standard deviations for the five-year period equal to or less than the median standard deviation for the entire peer group.

Products that deliver the 10 highest returns for the latest three-year period among 5-star managers are recognized as “Top Guns.” The Friess Small Cap Composite was eighth highest on the list.

Investment products in the 6-star category must meet the same standards for R-squared, rolling three-year return and standard deviation. Products that produce the 10 highest information ratios for the latest five-year period are recognized as “Top Guns.” The information ratio, which is often used to gauge active investment management skill, represents the amount of additional return generated per unit of increased risk relative to a benchmark index. The Friess Small Cap Composite was fifth highest on the list.  

The Friess Small Cap Composite’s average annual total returns (net of all fees and including the reinvestment of dividends) for one, five and 10 years through December 31, 2019 were 18.42%, 15.34% and 13.94%, respectively. The Russell 2000 Growth Index’s average annual total returns in the same trailing one, five and 10 years were 28.48%, 9.34% and 13.01%, respectively.  You cannot invest directly in the Composite or the Index.

PSN is an investment manager database and is a division of Informa Investment Solutions, Inc.  Peer groups were created using the information collected through the PSN investment manager questionnaire, and rankings use only gross of fee returns.  The PSN small-cap growth universe consists of 140 managers and 167 products.

The Friess Small Cap Composite includes all discretionary accounts that invest primarily in securities with market capitalizations below $4 billion, with the flexibility to invest in companies up to the maximum market capitalization of its benchmark. The Composite was created in January 1993. The inception date of Friess Associates’ management of the Composite is December 31, 1981. There are no non-fee paying accounts in the Composite. There is no minimum asset level required to be included in or remain in the Composite.

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