Is Wasatch Ultra Growth (WAMCX) a Strong Mutual Fund Pick Right Now?

If you've been stuck searching for Small Cap Growth funds, you might want to consider passing on by Wasatch Ultra Growth (WAMCX) as a possibility. WAMCX has a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.ObjectiveThe world of Small Cap Growth funds is an area filled with options, such as WAMCX. These funds tend to create their portfolios around stocks that sport large growth opportunities and market capitalization of less than $2 billion. The companies in these portfolios are usually on the smaller side, and are in up-and-coming industries and markets.History of Fund/ManagerWasatch is based in Salt Lake City, UT, and is the manager of WAMCX. Since Wasatch Ultra Growth made its debut in August of 1992, WAMCX has garnered more than $320.03 million in assets. The fund is currently managed by John Malooly who has been in charge of the fund since January of 2012.PerformanceOf course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of -6.64%, and is in the bottom third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 5.89%, which places it in the bottom 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. The standard deviation of WAMCX over the past three years is 23.71% compared to the category average of 15.01%. The standard deviation of the fund over the past 5 years is 23.56% compared to the category average of 16.43%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsThe fund has a 5-year beta of 1.26, so investors should note that it is hypothetically more volatile than the market at large. 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. WAMCX's 5-year performance has produced a negative alpha of -18.39, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.ExpensesFor investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, WAMCX is a no load fund. It has an expense ratio of 1.20% compared to the category average of 1.05%. WAMCX is actually more expensive than its peers when you consider factors like cost.Investors need to be aware that with this product, the minimum initial investment is $2,000; each subsequent investment needs to be at least $100.Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.Bottom LineOverall, Wasatch Ultra Growth ( WAMCX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and higher fees, this fund looks like a somewhat weak choice for investors right now.Don't stop here for your research on Small Cap Growth funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare WAMCX to its peers as well for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. 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