MicroCap Opportunities Fund
Michael CorbettChief Investment Officer & Portfolio Manager
- Joined Perritt Capital Management as research analyst in 1990
- Portfolio manager of Fund since 1996 and named lead manager in 1999
- Named Chief Investment Officer of Perritt Capital Management in 2014
- Quoted regularly in the financial press
Investment Criteria The Fund invests in companies that are listed in the bottom two deciles of the major stock exchanges as ranked by market capitalization. Today, the Fund invests in companies that at the time of initial investment have a market capitalization between $50 and $500 million.
Bottom-Up Process The management team uses a bottom up approach, with ideas provided by in-house research and an external network of small company research boutiques and regional brokerage firms that has been cultivated over thirty years.
Nine-Point Evaluation Companies are subjected to a nine-point evaluation based on balance sheets, cash flow and income statements that the management team believes demonstrate whether a company is acting in the interests of its shareholders.
Fundamental Research For companies whose fundamentals look favorable based on the nine point evaluation, the next step is to assess its broader business prospects. The management team meets with 3-5 company executives each week to identify what in our opinion are growing, niche companies with innovative products and/or services and the potential to build franchises and brands.
Valuation Assessment Companies are considered for purchase based on the objective of uncovering price efficiencies. These companies have less institutional ownership coverage and can often be purchased at an earlier stage of development.
The Perritt MicroCap Opportunities Fund (the “Fund”) seeks long-term capital appreciation.