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%.

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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...