Virtus KAR Small-Cap Growth Fund Class R6 (VRSGX)

Overview

The fund focuses on investing primarily in small market capitalization companies that show potential for long-term capital appreciation. With an investment strategy that gears towards occupying at least 80% of its asset base in common stocks of these small-cap entities, the fund is designed for investors seeking to benefit from the growth potential of smaller firms. Additionally, the fund emphasizes not just growth, but also risk mitigation in relation to the small capitalization growth market, aiming to present a less volatile investment option within the inherently risky domain of small-cap investments. The fund's investment decisions are guided by its subadviser, who looks for companies that possess sustainable competitive advantages and are priced attractively, indicating a thorough analytic approach towards selecting portfolio constituents.

Products and Services

• Small Market Capitalization Common Stocks

  The core investment focus of the fund lies in acquiring common stocks of small market capitalization companies. These investments aim to harness the high growth potential associated with smaller firms, based on the premise that these entities often exhibit faster growth than larger corporations. The strategy is predicated on identifying such companies that not only promise rapid growth but are also assessed as having sustainable competitive advantages, thus positioning the fund to potentially reap significant long-term capital appreciation.

• Risk Mitigation Strategies

  In an effort to offer a more stable investment vehicle within the volatile small-cap sector, the fund implements risk mitigation strategies. This approach involves a selective investment process managed by the fund's subadviser, who focuses on purchasing stocks at prices considered attractive. By doing so, the fund seeks to achieve a balance, striving for long-term capital growth without exposing investors to undue risk commonly associated with small cap investments. This careful selection process underscores the fund's commitment to prudence alongside its growth objectives.