1. Mutual Fund
Research
D.T

2. Top Results
• (1) Brown Advisory Small-Cap Growth I
• (1) Eagle Small Cap Growth A
• (1) Vanguard Small Cap Growth Index Inv
• (1) UBS US Small Cap Growth Y
• (1) Wells Fargo Advantage Small CoGr Adm
• (2) T. Rowe Price New Horizons

3. Brown Advisory
• Ticker: BIASX
• At-a-glance:
• Very concentrated: 56 holdings

4. • Pros: Well-rounded
• Satisfactory performance overall
• Downside Capture – minor
• Cons:
• Weak Upside Capture.
• Fails for 3yr and 5yr. But Strong in 10yr
• Good returns, trailing Vanguard despite higher fees
( 3 basis points over the median)
• No exceptional strength
• 3-yr risk % ranking slipped to 86.45%
• Risk ranking:11 over 10yr/ 86 over last 3yr

5. Conclusion
• The protective feature of the fund is in doubt
after recent hike in risk.
• Recommend:
• Conservative: Hold
• Moderate: Sell
• Aggressive: Sell

6. Eagle Small Cap Growth A
• Ticker: HRSCX
• At-a-glance:
• Defensive: low debt/capital, low PE compare
to peers.
• Expect to perform in bad time and lag in good
time.
• Sharpe: 1.2
• Expense ratio: 1.16 (but MS page says 1.31)

7. • Pros:
• Style Consistency
• Good return. Show improvement overtime.
• Experience Manager: 19.08 and 10.17
• Risk % ranking: 55.99 for 10yr; 30.53 for 3yr
• Cons:
• Downside Capture: Despite its strategy, the fund did
not perform well during bear market.
• Level of return does not justify 90 basis points higher
in fee compare to Vanguard.

8. Conclusion
• Conservative: Sell
• Moderate: Hold
• Aggressive: Hold

9. Vanguard Small Cap Growth Index
Inv.
• Pros:
• Lowest Fee: 24 basis points
• Long-run return: 6th . Recent return top 25.
• Upside Capture: Strong at 138.48% last 10y
• Low turn-over
• Satisfactory risk ranking by MS: 36% for 10y
• Cons:
• Capture short term downside at 144.37%
(among highest)

10. Conclusion
• Conservative: hold
• Moderate: buy
• Aggressive: hold/buy

11. UBS US Small Cap Growth Y
• Limited information available
• At-a-glance:
• Recently outperform expectation.
• 10-y return rank 37
• 2-y return rank 2
• Significant upside and downside capture.

12. • Pros:
• Consistency
• Upside Capture. Especially 3-yr.
• Experience Managers: 14.75 and 10.06
• Cons:
• Downside Capture
• Uncertain about return. Would the
exceptional return stay?
• Long term return trails Vanguard by 1.72
basis points

13. Conclusion
• Conservative: Sell
• Moderate: Sell
• Aggressive: Hold

14. Wells Fargo Advantage Sm Co Gr
Adm
• Ticker: NVSCX
• Limited report available
• At-a-glance:
• High fee
• Significant Fluctuations during both Bull
and Bear market.
• Sharpe: 1.14

15. • Pros:
• Return:
• 10yr: 56 5yr: 40
• 3yr: 15
• Experience management: 18 and 12
• Upside Capture: significant
• Good Morning Star Risk ranking: 12 and 20
• Cons:
• High Fees despite low historical returns.
• Downside Capture: very significant, 151.37 3yr

16. Conclusion
• Conservative: Sell
• Moderate: Sell
• Aggressive: Sell

17. T Rowe Price New Horizons
• Pros:
• Proven investments: O’Reilly Automotive, FMC
Tech, Panera Bread or Chipotle. Low fees:
0.81% vs 0.24% by Vanguard
• Robust return: rank 1st in 1, 3, and 5-year
cat, 2nd in 10-year cat.
• 10yr return: 9.47 vs 7.88 by Vanguard
• Alpha: 8.03
• High Upside Capture despite low Downside
Capture

18. • Cons:
• Manager Tenure: Ellenbogen took office in 2010.
• Would the high return continue?
• He led another fund for 4 years before 2010 –
11% annualized- best in communications.
• Top analysts stay with the fund.
• Ellenbogen let his lieutenant take charge of bio-
tech, while he focuses on his specialty.
• Risk
• Very high: 75, 61, 66
• Sharpe: 1.31

19. Conclusion
• Conservative: Sell
• Moderate: Sell
• Aggressive: Buy

20. Recap
• Vanguard and Eagle are very similar.
However, Eagle’s 9 basis points higher fee
is not justified by 10 year returns.
• T. Rowe Price offers high expected return
at high risk and low fee.
• Protection: Despite recent misstep, Brown
offers better protection over Vanguard and
WF.

21. Recommendation
• Conservative:
• Brown Advisory Small-Cap Growth I
• Vanguard Small Cap Growth Index Inv
• Moderate:
• Vanguard Small Cap Growth Index Inv
• Eagle Small Cap Growth A

22. • Aggressive:
• T. Rowe Price New Horizons
• T. Rowe Price Diversified Sm Cap Growth
• Eagle Small Cap Growth A
• Vanguard Small Cap Growth Index Inv
• Overall:
• Vanguard Small Cap Growth Index Inv