Today we are featuring top-performing “Small-Cap” equity mutual funds, which primarily invest in equity securities of companies that have market capitalizations of less than $1 billion.

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Small-Cap Equity Funds.

3 Super Picks

FBR Focus (FBRVX) was incepted in January 1997. The fund seeks long-term capital appreciation by investing primarily in the equity securities of domestic companies.

FBR Focus Fund invests in small and mid-cap companies that demonstrate consistent earnings growth, better-than-average returns on equity and high levels of free cash flow. It is characterized by a low level of business risk and reflects an approach that is inherently conservative and tax efficient.

The fund has been managed by Charles T. Akre since its inception. Akre has over 30 years of experience in money management. The fund’s total returns has outperformed that of its benchmark index in the last 1-, 3-and 5-year periods.

Conestoga Capital Advisor Small Cap (CCASX) seeks to provide long-term growth of capital. The fund primarily invests in equity securities of small-cap companies, including ADRs, convertible securities, foreign and domestic common and preferred stocks, rights and warrants.

Unit holders have to make a minimum initial investment of $2,500 to enter the Zacks#1 Rank (”Strong Buy”) fund. It has an expense ratio of 1.10%.

The fund’s top holdings include Blackboard Inc. (BBBB), NVE Corp. (NVEC) and Quality Systems Inc. (QSII).

Queens Road Small Cap Value (QRSVX) seeks long-term capital appreciation. It is non-diversified.

The fund follows a value-oriented investment strategy to find stocks that are undervalued by the market. It distributes dividends annually.

USEC (USU), Tellabs Inc. (TLAB) and ATC Technology Corp. (ATAC) are among the top holdings of the fund.

Discover Many More Funds

Learn more about the new Zacks Mutual Fund Rank and discover some of the best market-beating mutual funds by browsing our new mutual funds section. This part of Zacks.com offers a variety of tools, including mutual fund research, a new mutual fund screener, helpful answers to frequently asked questions and quick access to prospectuses and other information.

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward.

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