The Best and Worst Investments of 2013

By Ben Steverman - 2013-12-06T18:41:13Z

Xoom Corporation/PRNewsFoto via AP Images

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Best Small-Cap Stock Fund

Lord Abbett Micro-Cap Growth Fund


It was yet another fantastic year for small companies, with the Russell 2000 small-cap index up 170 percent since March 2009. Outperformance by smaller companies, which depend more on U.S. growth, is often a sign the economy is gaining speed. Lord Abbett Micro-Cap Growth Fund (LMIYX) did the best among such funds by focusing on the smallest of the small. Its top holding is Xoom Corp. (XOOM), a company that allows consumers to send money across international borders. Xoom, which has 160 employees, went public in February and its stock has returned 67 percent since then. 

Of 327 U.S.-based small-cap equity mutual funds with assets of at least $100 million and a median holding market capitalization of less than $3 billion. Excluded are closed-end funds and those that rely on leverage.