DALLAS (August, 2018)—Hodges Funds is pleased to announce that the Hodges Small Cap Fund (HDPSX) was named to the third quarter 2018 Schwab Mutual Fund OneSource Select List®.
Charles Schwab Investment Advisory, Inc. updates the list quarterly by rigorously screening no-load and no-transaction fee mutual funds for performance, risk, and expenses. The OneSource Select List is intended to help investors identify funds it deems as top-tier investments from among thousands of available mutual funds.
“We are pleased to be included in this prestigious group of our peers,” said Craig Hodges, co-portfolio manager.
The Hodges Small Cap Fund focuses on specific growth and value opportunities within the small cap segment of the market, which are generally market caps up to $5.2 billion. It seeks companies that are poised to benefit from recent industry consolidation, exhibit pricing power, have high barriers to entry, have strong brand awareness, and undervalued earnings prospects.
“The research team at Hodges Capital Management rigorously gathers and analyzes firsthand information from a broad scope of publicly-traded companies. In a year’s period, we make about 2,500 contacts across more than 1,000 management teams,” Hodges added.
The fund has no front-end load; it has been managed by Craig Hodges, Eric J. Marshall, CFA, and Gary Bradshaw since its inception December 18, 2007. The portfolio currently holds about 54 companies and has $658 million in assets as of June 30, 2018.
About Hodges Capital Management
Hodges Capital Management, advisor to the Hodges Small Cap Fund, was founded in 1989. It is a Dallas-based investment advisory firm. The firm manages a family of five mutual funds as well as custom portfolios for many high net worth individuals, trusts, foundations, and charitable organizations.
The Hodges mutual funds are five specific strategies that seek to address varied tolerances equity investor may have. A staff of four research analysts and five portfolio managers run the investment process, which believes in the value of investing in common stocks, extensive research, extensive experience, sound judgment and potentially reducing risk by evaluating financial opportunities from every conceivable angle.
The fund invests in smaller companies, which involves additional risks such as limited liquidity and greater volatility. The fund may also make short sales of securities, which involves the risk that losses may exceed the original amount invested. Investments in foreign securities and emerging markets involve greater volatility and political, economic and currency risks and differences in accounting methods. The use of options and future contracts have special risks such as unlimited losses of the underlying holdings due to unanticipated market movements and failure to correctly predict the direction of securities prices, interest rates and currency exchange rates.
Market Cap is the value of a company that is traded on the stock market, calculated by multiplying the total number of shares by the present share price.
While the fund is no-load, management fees and other expenses still apply. Please refer to the prospectus for further details. Gross Expense Ratio: 1.28%. The fund does not have a transaction fee through Charles Schwab.
CSIA also may apply additional qualitative factors to its analysis to enhance its overall evaluation of a fund, including, for example, changes in a fund’s investment strategy or management structure, portfolio manager tenure, whether a fund’s investment style and portfolio holdings are representative of its investment category, portfolio composition and turnover rates, consistency of a fund’s performance and CSIA’s evaluation of the fund over time, and other risk and diversification considerations. Additionally, funds selected must be: No-load and open to new investors at Schwab in all 50 states. Have a minimum three-year performance track record (except funds that are listed below the “Leading Schwab Affiliate Funds” sections of the lists, which are eligible if they have a minimum 12 months performance track record under their current management and/or current investment objectives and strategy). Have at least $40 million in assets (except for small-cap value, high yield, multisector bond, world bond, emerging market equity and bond, diversified Pacific Asia, Pacific Asia ex-Japan, Europe, Japan, Latin America, convertibles, retirement income, target date and specialty funds, which require at least $20 million in assets). To meet this requirement, assets in multiple share classes of the same fund may be aggregated. There are approximately 2,100 funds that participate in the Schwab Mutual Fund One Source service and are eligible for the OneSource Select List.