Small Caps, Big Returns

Monday, 28 Jan 2008 | 11:38 AM ET
Cramer's Mutual Admiration
Mad Money host Jim Cramer pulls back the curtain on mutual funds, with Thomas McDowell, Rice Hall James Micro Cap CEO and Mad Money host Jim Cramer.

Last week, Cramer highlighted a mutual fund that has a proven record of gains in tough markets. On Friday’s show, he revisited the mutual fund space and spoke to the manager of a fund that specializes in small cap stocks.

But because the stocks McDowell’s fund chooses are small and therefore risky, he said he’s always ready to mix up the holdings. And contrary to popular belief, McDowell said the goal of amassing a portfolio of small names is not to hope for takeovers but to see the companies grow. After all, many of the biggest stocks in the market were small caps once.

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