A Steadier Take on Small-Growth
Tony Thomas: Neuberger Berman Genesis is an attractive option for investing in smaller companies.
The fund's veteran comanagers, Judy Vale and Bob D'Alelio, each have nearly 40 years of investing experience--and neither intends to retire soon. They've worked together on the fund since 1997, building a competent team of sector specialists that includes two associate portfolio managers and four dedicated analysts.
Don't let this fund's classification in the small-growth category fool you. The managers aren't interested in flashy growers or unproven startups. Instead, they like established firms with steady, modest growth rates. Their portfolio's filled with profitable companies, many of which also have low debt and rising free cash flow. Some are also mid-caps, but they're usually winners that the fund first bought years ago as small firms.
All this has been a recipe for success at Genesis. The fund's return under Vale and D'Alelio easily tops its Russell 2000 benchmark thanks in part to its relative durability in down markets and tempered volatility. The managers have also dealt effectively with billions in assets, keeping turnover low and continuing to invest in smaller companies. Such adept management earns this fund's Bronze rating.