Is TETON Westwood Small Cap Equity I (WWSIX) a Strong Mutual Fund Pick Right Now?

There are plenty of choices in the Small Cap Blend category, but where should you start your research? Well, one fund that may not be worth investigating is TETON Westwood Small Cap Equity I (WWSIX). WWSIX bears a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.ObjectiveZacks categorizes WWSIX as Small Cap Blend, which is an area packed with options. Usually targeting stocks with market caps of less than $2 billion, a Small Cap Blend mutual fund lets investors diversify their funds among other kinds of small-cap equities. This can help reduce risk found in companies that have a lower stock market valuation.History of Fund/ManagerWWSIX finds itself in the TETON family, based out of Rye, NY. Since TETON Westwood Small Cap Equity I made its debut in October of 2008, WWSIX has garnered more than $50.43 million in assets. A team of investment professionals is the fund's current manager.PerformanceObviously, what investors are looking for in these funds is strong performance relative to their peers. WWSIX has a 5-year annualized total return of 15.85%, and it sits in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 11.17%, which places it in the bottom third during this time-frame.It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.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. Over the past three years, WWSIX's standard deviation comes in at 21%, compared to the category average of 15.83%. Over the past 5 years, the standard deviation of the fund is 21.19% compared to the category average of 15.17%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsInvestors should note that the fund has a 5-year beta of 1.04, which means it is hypothetically 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. WWSIX's 5-year performance has produced a positive alpha of 1.4, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.HoldingsExploring 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 mostly on equities that are traded in the United States.Right now, 85.63% of this mutual fund's holdings are stocks, with an average market capitalization of $2.66 billion. The fund has the heaviest exposure to the following market sectors:TechnologyFinanceIndustrial CyclicalTurnover is 72%, which means, on average, the fund makes fewer trades than comparable funds.ExpensesFor investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, WWSIX is a no load fund. It has an expense ratio of 1.00% compared to the category average of 0.96%. WWSIX is actually more expensive than its peers when you consider factors like cost.Investors need to be aware that with this product, the minimum initial investment is $500,000; each subsequent investment has no minimum amount.Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.Bottom LineOverall, TETON Westwood Small Cap Equity I ( WWSIX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and higher fees, TETON Westwood Small Cap Equity I ( WWSIX ) looks like a poor potential choice for investors right now.Your research on the Small Cap Blend segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. 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Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (WWSIX): Fund Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks