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Road Rules
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Investing can be confusing. Luckily, Cramer has mapped out some road rules for all you Home Gamers trying to navigate the jungle that is Wall Street. Think of it as "Mad Money 101" –- some fundamental advice to keep in mind as you play the market. Whether you're a first time investor or a seasoned financier, it's always good to remember the basics.
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Jan.28
11:38 AM ET
Monday, 28 Jan 2008
Small Caps, Big Returns

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.

Thomas McDowell of the Rice Hall James Micro Cap Fund [RHJSX  Loading...      ()   ] is as much a risk manager as he is a fund manager. With a portfolio heavily weighted in the health care, industrial and consumer service sectors, McDowell said he and his team look for small, under-the-radar companies that have something unique to offer. Once they find a potential investment, they use an in-depth analysis of the fundamentals to see if it’s worth adding to the portfolio.

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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