Is Driehaus International Small Cap Growth (DRIOX) a Strong Mutual Fund Pick Right Now?

Any investors hoping to find a Non US - Equity fund might consider looking past Driehaus International Small Cap Growth (DRIOX). DRIOX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.ObjectiveZacks categorizes DRIOX as Non US - Equity, a segment stacked high with options. Non US - Equity mutual funds like to invest in companies outside of the United States, an important characteristic since global mutual funds are known to keep a good portion of their portfolio stateside. These kinds of funds can often extend across all cap levels, and will typically allocate their investments between emerging and developed markets.History of Fund/ManagerDriehaus is based in Chicago, IL, and is the manager of DRIOX. Driehaus International Small Cap Growth made its debut in September of 2007, and since then, DRIOX has accumulated about $236.86 million in assets, per the most up-to-date date available. The fund is currently managed by a team of investment professionals.PerformanceOf course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 6.39%, and it sits in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of -2.43%, which places it in the top third during this time-frame.It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 20.49%, the standard deviation of DRIOX over the past three years is 18.25%. Over the past 5 years, the standard deviation of the fund is 20.12% compared to the category average of 21.4%. This makes the fund less volatile than its peers over the past half-decade.Risk FactorsWith a 5-year beta of 1, the fund is likely to be as volatile as the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. DRIOX's 5-year performance has produced a negative alpha of -7.79, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.ExpensesAs competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, DRIOX is a no load fund. It has an expense ratio of 1.13% compared to the category average of 1.22%. So, DRIOX is actually cheaper than its peers from a cost perspective.While the minimum initial investment for the product is $10,000, investors should also note that each subsequent investment needs to be at least $2,000.Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.Bottom LineOverall, even with its comparatively strong performance, average downside risk, and lower fees, Driehaus International Small Cap Growth ( DRIOX ) has a low Zacks Mutual Fund rank, and therefore looks a somewhat weak choice for investors right now.For additional information on the Non US - Equity area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into DRIOX too for additional information. 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