Chart of the month: MicroCapital


The MicroCapital fund has recovered dramatically from its lackluster performance last year, which hit a nadir in mid-2002 as micro-cap growth stocks took a beating. The $68 million fund boasts a benchmark crushing 91.5% year-to-date return, helped along by double-digit performances in April, May and July.

Managed out of San Francisco by Ian Ellis and his team, MicroCapital typically takes long/short positions in 30 to 50 U.S. smaller-cap growth stocks. The fund has consistently outperformed the equity indices by exploiting inefficiencies in its chosen cap strata and adding value as an activist investor.