(MDL)

The Wasatch Core Growth Fund (WGROX) is an actively managed mutual fund that focuses on investing in small to mid-cap U.S. growth stocks. The fund aims to achieve long-term capital appreciation by identifying companies with strong earnings potential and sustainable competitive advantages. The investment philosophy of the fund is anchored in a research-driven, bottom-up stock selection process that emphasizes quality, growth, and strong management teams.

One of the key benefits of investing in WGROX is its potential to outperform broad market indices, such as the S&P 500 or the Russell 2000. Unlike passive index funds, WGROX can take advantage of the inefficiencies often found in small to mid-cap companies. By employing a team of experienced analysts and portfolio managers, the fund can identify investment opportunities that may be overlooked by passive strategies.

In addition to its stock-picking prowess, WGROX has a history of maintaining a well-diversified portfolio. Its largest holdings include companies from various sectors, such as technology, healthcare, and consumer discretionary. Some of the fund's top holdings are Stamps.com, 10x Genomics, and Crocs. This diversified approach ensures that the fund is not overly reliant on a single sector, thus reducing concentration risk.

Another advantage of investing in WGROX is its ability to adapt to changing market conditions. While index funds simply track a predetermined set of stocks, WGROX can shift its portfolio to take advantage of new trends and opportunities. This flexibility can be particularly valuable during periods of market volatility or economic uncertainty.

Investors considering WGROX should be aware that its focus on growth stocks means it may exhibit higher levels of volatility compared to more conservative investments. Additionally, the fund's active management comes with higher expense ratios compared to index funds. Despite these factors, for investors seeking long-term growth and the potential for outperformance, the Wasatch Core Growth Fund can be a suitable choice.