CTC, Now a momentum stock...
But the folks at BlackRock Micro-Cap aren't ones for old-fashioned rules. For example, they'll happily hold onto a stock after it zooms past official micro-cap status. "We're not going to sell those stocks just so someone else can make money off them. That seems insane!" says an indignant Tom Callan, another manager of the fund. Consequently, the fund owns several stocks with market caps over $1 billion, and has an overall weighted average market cap of $600 million, which officially places the fund in small-cap status. Of course, who's complaining? Certainly not the shareholders.
For momentum investing to work, managers must have quick trigger fingers. And these guys do. In fact, once a stock's price movement lags (meaning its relative price strength no longer places it in the top 35%) for a few weeks, it's out of the portfolio. Of course, the managers are not above repurchasing the stock if it starts to behave again. The fund has made two round trips on telecom stock CTC Communications (CPTL), buying and selling much of its position twice. Recently the fund purchased the stock for a third time. "This time we're making some money on it," boasts Carey
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