Ranger Investment's Micro Cap Growth Strategy: A Decade of Exceptional Returns in Investment Management
In a notable achievement for boutique investment management, Ranger Investment Management, L.P. has secured the second place in the prestigious PSN Top Guns Manager of the Decade list, specifically for its Micro Cap Growth strategy. This recognition is reflective of the firm's consistent performance across various investment portfolios over a decade, showcasing the strength of their approach to small- and micro-cap U.S. growth investing.
Launched on August 1, 2014, Ranger's Micro Cap Growth strategy has delivered impressive returns, boasting an annualized return of 14.2% before fees from the inception to December 31, 2024. Comparatively, the benchmark Russell Microcap Growth Index achieved a mere 5.3% over the same period. This sharp contrast highlights the effectiveness of Ranger's investment methods within a competitive micro-cap market.
The PSN Top Guns list serves as a comprehensive evaluation tool for investment strategies across more than 75 asset classes, relying on robust quantitative measures. The micro-cap universe evaluated for this year includes 53 firms with 59 portfolios, emphasizing the competitive landscape Ranger has navigated successfully.
Conrad Doenges, Chief Investment Officer and Portfolio Manager at Ranger Investments, emphasized that this accolade speaks volumes about their disciplined investment philosophy. Doenges stated, "Our team remains concentrated on unearthing high-quality, high-growth micro-cap firms that possess sustainable competitive edges. This long-term outlook has positioned us to provide attractive risk-adjusted returns for our clientele."
Ranger's Micro Cap Growth strategy specifically targets U.S. micro-cap entities distinguished for their growth potential, resilient business models, and strong managerial capabilities. Available in several formats, including a separate account, model portfolio, and mutual fund (the Ranger Micro Cap Fund, Institutional Class, RFIMX), it supports a broad range of investors seeking exposure to burgeoning companies within this segment of the market.
Since its inception, this strategy has achieved a striking 15.0% annualized return before fees, and 13.6% net of fees, effortlessly outperforming the broader Russell Microcap Growth Index, which reported a 6.3% return. Furthermore, it has also surpassed the large-cap S&P 500 Index over the same timespan, showcasing the strategy's resilience and effectiveness even in larger segments of the market.
As of December 31, 2024, assets under management for the Micro Cap Growth strategy totaled $442 million. The team overseeing these investments consists of skilled portfolio managers: Doenges, Andrew Hill, Joseph LaBate, and Brown McCullough, along with adept analysts including Devin Holland, Kevin Zhu, and Jeff Dalton. Together, they combine their expertise to achieve optimal investment outcomes for their clients.
Ranger Investment Management, founded in 2003, is recognized for its focus on U.S. small- and micro-cap growth strategies, employing a rigorous bottom-up, fundamental research process to identify high-quality growth opportunities. By the end of 2024, this trusted firm manages and advises on over $1.9 billion in assets, reinforcing its reputation as a significant player in the equity investment space.
Overall, being recognized as a PSN Top Guns Manager of the Decade not only exemplifies Ranger Investments' success but also reaffirms their commitment to delivering value and excellence in investment management, adhering to the highest standards of performance measurement throughout its remarkable history in the financial sector.