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Fuller & Thaler Behavioral Small-Cap Growth Fund highlighted by Citywire

Citywire's article "Small Growth funds had a great run. Their investors? Not so much" discusses how Morningstar's Small-Cap growth category has been volatile in the past three years. The below quote is from the article:

"Finally, in news that must warm the heart of behavioral economist Richard Thaler, the average investor in his firm’s $107m Fuller & Thaler Behavioral Small-Cap Growth fund (FTXFX) actually did better than the fund itself over the period. For the three years to the end of January, the average investor achieved a 34.48% annualized return, beating the fund’s 20.54% by nearly 14 percentage points."

Morningstar Investor Return captures how the average investor fared in a fund over a period of time. It estimates the return earned collectively by all the investors in a fund. Investor return, also known as dollar-weighted return, accounts for all cash inflows and outflows from purchases and sales and the growth in fund assets. It complements the more traditional metric of total return, which measures what investors could have earned had they bought and held the fund, reinvesting all dividends, over a period of time.

Investor return is an internal rate of return calculation that places greater emphasis on periods in which fund assets are larger. Morningstar now calculates one-, three-, five-, and 10-year trailing and annual investor returns for open-end mutual funds based in the United States.


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