This Value Fund Sees Enormous Opportunities In These Small Caps

Clayton Capital’s Appreciation Fund gained 2.6% during the second quarter, versus the S&P 500’s 10.9% return and the 8.5% gain for the Russell 2000. Year to date, Clayton Capital is off 3.5%, while the S&P is up 6.2% and the Russell is down 1.8%.

Since the fund’s inception in January 2003, it has compounded capital at a rate of 10.6% net per year, versus 11.2% for the S&P 500 and 9.5% for the Russell 2000.

Struck down by volatility

In their second-quarter letter to investors, which was obtained by Hedge Fund Alpha, the Clayton Capital team, consisting of Jason Stankowski, Brian Lancaster and Alex Gates, reported that Bristow Group, TransAlta and Acacia Research drove their Q2 gains, although...