How this small-cap growth fund beats the Street

It is the focus on "unrecognized or misunderstood" growth potential that helps the Aston-LMCG Small Cap Growth Fund beat the Street, its manager told CNBC on Wednesday.

The fund is up 9 percent over the past year, beating its benchmark, the Russell 200 Growth index, by 2 percent.

The fund focuses on that growth potential with "a valuation discipline that prevents us from overpaying for growth," Andrew Morey said in an interview with "Closing Bell."

"That unrecognized aspect can also act as a catalyst as well when the situation becomes clearer to the broader audience of investors, driving valuation higher."

Also in his corner is the economic recovery, which he believes will continue. That will be a tail wind for small-cap growth stocks because they "benefit disproportionately from those changes in the economy," Morey said.

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As for concerns over the strong dollar, he said small-cap growth stocks aren't hurt by it like large-cap companies are.

That's because a relatively smaller portion of their sales and earnings are derived overseas, he said.

The fund's top holdings include Synchronoss Technologies, Internap, Sotheby's and Community Health Systems. Its biggest categories are information technology and health care, followed by consumer discretionary and industrials.

—CNBC's Stephen Desaulniers contributed to this report.

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