Skip to Content
Our Picks

Small-Cap Diamonds in the Rough

Our Premium Fund Screener uncovers hidden gems.

Since July 2001, Morningstar's FundInvestor newsletter has included a feature called Hidden Gems, a series of articles designed to highlight funds with strong track records and relatively small asset bases. Unsurprisingly, this feature is among the newsletter's more-popular articles. After all, who wouldn't want to own a hidden gem?

That raises an interesting conundrum, of course: Why, exactly, would a solid offering have trouble attracting assets? Don't investors tend to flock to the funds with the best track records?

Well, not exactly.