CNBC Pro

This small-cap growth fund is riding innovators like Carvana to a 40% return this year

Source: NYSE

The cornerstone of the Taylor Frigon Core Growth Fund, which has vastly outperformed the S&P 500 this year, is patience.

Gerry Frigon, the fund's portfolio manager, said he seeks to own "well-managed companies in front of fertile fields for future growth." Frigon thinks of investing as buying businesses as opposed to stocks, and it's not unusual for the firm to own a company for 10 to 15 years. 

The mutual fund, which has five stars from Morningstar and trades under the ticker TFCGX, has gained 39% this year, far ahead of the S&P 500's roughly 5% return. The fund is outperforming 94% of the nearly 600 funds in its Morningstar category year to date, boosted by bets on under-the-radar names like Compugen and Vapotherm.

More In Follow the Pros

Pro Picks: Watch all of Wednesday's big stock calls on CNBC
CNBC ProPro Picks: Watch all of Wednesday's big stock calls on CNBC
A rare fund in the green this year succeeds by betting on stocks that work even in a recession
CNBC ProA rare fund in the green this year succeeds by betting on stocks that work even in a recession
Cathie Wood says the Fed is making a serious mistake as bond market flashes worst signal since 1980s
CNBC ProCathie Wood says the Fed is making a serious mistake as bond market flashes worst signal since 1980s