Sell: Hodges Small Cap Fund (HDPSX)
From BI Research
Updated from Investment Digest 770, June 17, 2015
While Hodges remains a 5-star rated small-cap fund focused on growth and value opportunities its 3-year rating has slipped to 4 and it is increasingly falling behind the Russell 2000 lately, and the gap appears to be widening. I mentioned in my initial report that the fund was located in Texas and a good many of its companies were domiciled there, including 12 energy companies. Lower oil prices amidst all the oil industry layoffs are likely having some impact. Of course we expected Hodges with its five-star rating to beat the market averages, not trail them. And that is not happening. So we are going to close our position in Hodges for a small loss and move on.
Tom Bishop, BI Research, www.biresearch.com, December 16, 2015