Brad: I think you are making a mistake by using the "Value" label in referring to the small cap tech stocks that are down 50-70% from their highs. Although one might describe them as "good value" in relation to their earnings, it isn't what is meant by value in the PBHG Strategic Small Company fund.
Actually, the fund is managed by two very different managers and is split 50-50 between the two stock-picking styles of Growth and Value.
Jim Smith of PBHG runs the growth portion of the portfolio, using PBHG's proprietary ranking system. He looks for companies that are showing accelerating sales, rapidly growing earnings, expanding profit-margins, and high earnings estimate revisions. These are the companies that have seen the most damage in the recent correction.
The Value portion of the fund's portfolio is run by Gary Hubbell of Newbolds, for 40 years a value-oriented investment firm. You may remember him from his managership of the MAS Small Cap Value fund. Gary selects stocks using the traditional measures of low price/ earnings, low price/book, low price/cash flow. Value stocks have been the favored asset class over the past year, in stark contrast to growth company stocks.
You stated "I actually prefer value now; there are SO MANY small cap tech stocks are down 50-70% from their highs. There is so much to choose from.
The fund manager must be in heaven."
Two comments: 1) I think you really meant to say that you prefer growth now.
2) Only one of PBHG Strategic Small Company fund's managers must be in heaven.
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