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This Aggressive Small-Growth Fund Is a Top Pick

Silver-rated Lord Abbett Developing Growth pursues an aggressive strategy, but its performance ranks in the top decile of the small-growth category and its expenses are low.


David Kathman: Lord Abbett Developing Growth (LAGWX) is a small-growth fund with a fairly aggressive strategy and high turnover. Normally, we tend to be fairly skeptical of funds like that; but in this case, Tom O'Halloran, who has been the lead manager since 2003, has compiled a really strong track record.

He tends to avoid the riskiest small-cap stocks, and even though the fund has had a tough time in down markets like 2008, it has always bounced back really strongly from those periods. The long-term track record is extremely strong, ranking in the top decile of the small-growth category.

The fund also has low expenses relative to its peers, helping it earn a Morningstar Analyst Rating of Silver. So, for investors looking for an aggressive fund in the small-growth category, this is one of our top picks.

David Kathman does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.