If you've been stuck searching for All Cap Growth funds, you might want to consider passing on by Hodges Small Cap Fund Institutional Class (HDSIX) as a possibility. HDSIX bears a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.

Objective

Tickers is classified in the All Cap Growth segment by Zacks, an area full of possibilities. All Cap Growth funds have holdings across small, medium, and large-cap levels in order to increase diversification. As long as stocks demonstrate strong growth characteristics, these portfolios will invest in various equity securities regardless of company size.

History of Fund/Manager

Hodges Capital is responsible for HDSIX, and the company is based out of Dallas, TX. Hodges Small Cap Fund Institutional Class made its debut in December of 2008, and since then, HDSIX has accumulated about $96.48 million in assets, per the most up-to-date date available. The fund is currently managed by a team of investment professionals.

Performance

Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 2.52%, and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 8.78%, which places it in the bottom third during this time-frame.

When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. HDSIX's standard deviation over the past three years is 20.3% compared to the category average of 13%. The fund's standard deviation over the past 5 years is 18.53% compared to the category average of 12.9%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment.

Investors should note that the fund has a 5-year beta of 1.3, so it is likely going to be more volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. The fund has produced a negative alpha over the past 5 years of -9.36, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Holdings

Exploring the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is largely on equities that are traded in the United States.

As of the last filing date, the mutual fund has 88.83% of its assets in stocks, and these companies have an average market capitalization of $3.90 billion. The fund has the heaviest exposure to the following market sectors:

1. Industrial Cyclical

2. Finance

3. Retail Trade

4. Technology

5. Other

This fund's turnover is about 81%, so the fund managers are making fewer trades than comparable funds.

Expenses

As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, HDSIX is a no load fund. It has an expense ratio of 1.04% compared to the category average of 1.06%. HDSIX is actually cheaper than its peers when you consider factors like cost.

Investors should also note that the minimum initial investment for the product is $1 million and that each subsequent investment needs to be at $100.

Bottom Line

Overall, Hodges Small Cap Fund Institutional Class ( HDSIX ) has a low Zacks Mutual Fund rank, weak performance, worse downside risk, and lower fees compared to its peers.

Don't stop here for your research on All Cap Growth funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare HDSIX to its peers as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.

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