What Is an All-Cap Fund?

An all-cap f💃und is a stock fund that invests in a broad universe of equity securities w🌠ith no capitalization mandates or constraints.

The term "cap" is shorthand for market capitalization. The investment community measures a company's size by its market capitalization, which is calculated by multiplying the number of a company's 澳洲幸运5官方开奖结果体彩网:outstanding shares by its current stock price. Companies are 🥃most often characterized as small-, medium-, or large-cap.

Understanding All-Cap Funds

An all-cap fund does not focus on a specific capitalization style. Instead, it can invest across the full range of market capitalizations. While there is no universal consensus on the exact definitions of the various market caps, the following parameters are a good a🅺pproximation:

• Giant or mega-cap: Above $200 billion
• 澳洲幸运5官方开奖结果体彩网:Large-cap: From $10 billion to $200 billion
• Mid-cap: From $2 billion to $10 billion
• 澳洲幸运5官方开奖结果体彩网:Small-cap: From $300 million to $2 billion
• 澳洲幸运5官方开奖结果体彩网:Micro-cap: from $50 million to $300 million
• Nano-cap: Below $50 million

In targeted capitalization funds, these designations can inform mutual fund investors about the investment focus of the fund in terms of company size. While not investing by capitalization, all-cap funds may have other targeted investment styles or they may be 澳洲幸运5官方开奖结果体彩网:flexible funds that focus just on capital appreciation. Investment objectives and strategies can vᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚary broadly in all-cap funds.

All-Cap Fund Objectives

All-cap fund꧋s may often require greater monitoring and due diligence from investors because of the broad ℱuniverse available for investment. Often these funds will only include all-cap in their fund name, requiring investors to dig deeper for comprehensive investing style details. Registered funds must provide full details on their investment objective and strategy in a prospectus included with the fund’s registration statement.

All-cap funds can be passively or actively managed. Passively managed all-cap funds can provide investors with total market exposure using indexes like the 澳洲幸运5官方开奖结果体彩网:Dow Jone🐻s ♍U.S. Total Stock Market Index and the 澳洲幸运5官方开奖结果体彩网:Wilshire 5000 Index (TMWX).

澳洲幸运5官方开奖结果体彩网:Actively managed all-cap funds often take a more targeted approach to achieve capital gains. Common investment styles for all-cap funds can include growth, value, and income. Each uses active analysis to identify top-performing stocks and achieve capital gains. The large universe involved in all-cap funds also makes it attractive for alternative management styles such as 澳洲幸运5官方开奖结果体彩网:long/short strategies.

Alternative managers can use leverage and deriva𝔍tives to seek high market returns throughout all market cycles. In the case of long/short funds, investment managers seek to take long positions on stocks they believe will continue to🐼 outperform, while expanding the investment options to also include taking short positions on stocks they believe will underperform in the short and long term. Some funds may also broaden their eligible investments to international markets, which can provide for even greater latitude and a more diverse universe.

Example: Federated MDT All-Cap Fund

In the all-cap fund category, the (QKACX) has been a top performer. As of October 26, 2020, the Fund had returned nearly 9% to investors over the year. The fund is benchmarked to the 澳洲幸运5官方开奖结果体彩网:Russell 3000 Index, a market-capitalization-weighted equity index maintained by FTSE Russell that provides exposure to the entire U.S. stock market. Iജt invests using a fundamental quantitative process that seeks to provide for long-term capital appreciation.