CNBC Stock Blog
- 10 Dividend Picks For Your Portfolio: Chief Investors
- 4 Thanksgiving Week Buys For Your Portfolio: Market Pros
- There's a 'Great Chance' For a Double-Dip Recession: Strategist
- Retail Earnings and Sales to Improve in Q4: Analyst
- 4 Food Stocks to Stuff in Your Portfolio: Analyst
- S&P at 1050-1200 Trading Range Next Year: Strategist
- Art Cashin: Caution 'Growing' in Financials, Dividend Moves
- 3 Software Stock Picks from Lazard's Senior Analyst
- Investors Bet on a New Year's Rally For eBay
- Why You Should Play the Reflation Trade: Stock Picker
MOST SHARED
- The Executive Job Search
- Chinese Overcapacity is Worsening, EU Chamber Warns
- US Mint to Suspend American Eagle Gold 1-Ounce Coins
- Salvation Army's Kettles Now Credit Card-Ready
- Topless Business Is Taking Off
- Dubai Debt Delay Rattles Stock, Bond Markets
- Fannie Mae to Tighten Lending Standards: Report
- Oil Friday
- The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed
- 4 Thanksgiving Week Buys For Your Portfolio: Market Pros
- There's a 'Great Chance' For a Double-Dip Recession: Strategist
- Revenge of the Gangsta Nerds
- Will TCU See The "Flutie Effect?"
- Retail Earnings and Sales to Improve in Q4: Analyst
- Consumers Catching the Holiday Spirit
- It's Beginning To Look A Lot More Riskless
- Crescenzi: Claims Level Suggests End to Job Losses
- Hedge Funds Take Early Lead in Warren Buffett's 'Big Bet'
- Share Trading on London Stock Exchange Frozen
- Lloyds Investors to Approve Record Rights Issue
- Fannie Mae to Tighten Lending Standards: Report
- China Overcapacity Worsening, EU Chamber Warns
- Investing in Good Karma – and Making a Profit
- China Unveils Carbon Target Ahead of Copenhagen
- Wal-Mart Price Pressure Hurts China Workers: Report
- Black Friday to Avoid Red Ink; Greenback Gets the Blues
- Bankruptcies Jump, Hitting Highest Level in Four Years
RSS FEED
Text Size 
CNBC News Associate
Small cap stocks may be risky, but they’re great for investors who want to make money in this type of market, said Chao Chen, portfolio manager at TFS Capital.
“Historically, small caps outperform large caps by 6 percent over the last 100 years,” Chen told CNBC.
Chen suggested investors look for inefficiencies that are uncorrelated to the general movements of the market when investing in small cap names.
“We have a very diversified portfolio, which helps to reduce the volatility,” he said.
Largest 5 Holdings in Chen's Fund:
Ness Technologies [NSTC
Loading...
()
]
Coventry Health Care [CVH
Loading...
()
]
Ryder System [R
Loading...
()
]
Oplink Communications [OPLK
Loading...
()
]
Ashland [ASH
Loading...
()
]
“Even these are large holdings compared to the others in the fund, they only comprise about 3 percent of the fund in total,” he said. “So the performance of the fund doesn’t depend on any individual stock doing well, but how the strategies perform.”
______________________________
Disclosure:
Chen owns shares of all the companies above in his TFS Small Cap Fund.
______________________________
CNBC Slideshows:
______________________________
______________________________
Data is a real-time snapshot *Data is delayed at least 15 minutes