Investment objective & strategy
As of Dec. 29, 2025 · prospectusObjective. The Funds investment objective is to provide capital appreciation.
Strategy. The Fund pursues its investment objective by investing primarily in the common stocks of small companies that are traded on national security exchanges, the NASDAQ stock market and on the over-the-counter market. Small companies will be defined as companies with market capitalizations that are between the lowest and highest market capitalizations, as measured on a rolling basis over the most recent 36-month period, in either the Russell 2000 Index (which had a rolling 36-month market capitalization range of $1.2 million to $56.5 billion as of October 31, 2025), the S&P Small Cap 600 Index (which had a rolling 36-month market capitalization range of $62.1 million to $29.1 billion as of October 31, 2025), or the MSCI USA Small Cap Index … The Fund pursues its investment objective by investing primarily in the common stocks of small companies that are traded on national security exchanges, the NASDAQ stock market and on the over-the-counter market. Small companies will be defined as companies with market capitalizations that are between the lowest and highest market capitalizations, as measured on a rolling basis over the most recent 36-month period, in either the Russell 2000 Index (which had a rolling 36-month market capitalization range of $1.2 million to $56.5 billion as of October 31, 2025), the S&P Small Cap 600 Index (which had a rolling 36-month market capitalization range of $62.1 million to $29.1 billion as of October 31, 2025), or the MSCI USA Small Cap Index (which had a rolling 36-month market capitalization range of $8.5 million to $40.3 billion as of October 31, 2025). The Fund will normally invest at least 80% of its net assets (which include the amount of any borrowings for investment purposes) in investments in small companies and will notify shareholders at least 60 days in advance of any change in this investment policy. Such definition will be applied at the time of investment and the Fund will not be required to sell a stock because a company has grown outside the market capitalization range of small capitalization stocks. Up to 30% of the Funds net assets may be invested in foreign securities. When investing in foreign securities, the Funds Adviser may emphasize investment in a particular country or group of countries which may subject the Fund to the risks of investing in such country or group of countries to a greater extent than if the Funds foreign security exposure was diversified over a greater number of countries. The Advisers process for selecting investments is bottom-up and growth-oriented. The Fund may loan up to 30% of its total assets in the form of its portfolio securities to unaffiliated broker/dealers, banks or other recognized institutional borrowers to generate additional income. The Fund receives cash, U.S. Treasury obligations and/or other liquid securities as collateral. The Fund also may invest up to 15% of its net assets in illiquid securities. The Fund may invest in fixed-income securities, American Depositary Receipts and use derivative contracts (such as, for example, futures, options and swaps contracts) and/or hybrid instruments to implement elements of its investment strategy. For example, the Fund may use derivative contracts or hybrid instruments to increase or decrease the portfolios exposure to the investment(s) underlying the derivative or hybrid instruments in an attempt to benefit from changes in the value of the underlying investment(s), to realize gains from trading a derivative contract or to hedge against potential losses. There can be no assurances the Funds use of derivative contracts and/or hybrid instruments will work as intended. Derivative investments made by the Fund are included within the Funds 80% policy and are calculated at market value.
Top holdings
As of April 30, 2026 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| COMFORT SYSTEMS USA INC | — | $153.11M | 5.32% |
| ARGENX SE | — | $91.67M | 3.19% |
| CAMTEK LTD | — | $88.09M | 3.06% |
| ATI INC | — | $82.18M | 2.86% |
| SITIME CORP | — | $62.40M | 2.17% |
| UL SOLUTIONS INC CL A | — | $59.47M | 2.07% |
| BE SEMICONDUCTOR | — | $54.60M | 1.90% |
| VIKING HOLDINGS LTD | — | $53.24M | 1.85% |
| GUARDANT HEALTH INC | — | $53.12M | 1.85% |
| CENTURI HOLDINGS INC | — | $50.97M | 1.77% |
Portfolio moves
Jan 31, 2026 → Apr 30, 2026How many positions this fund opened, exited, grew, trimmed, or left unchanged between its two most recent N-PORT snapshots — net changes between point-in-time reports, not a trade log.
Similar funds
Funds whose portfolios most overlap this one, by weight| Fund | Overlap | Net exp. |
|---|---|---|
| Federated Hermes Kaufmann Fund · KAUAX, KAUCX, KAUFX, KAUIX | 45% | 1.46% |
| Federated Hermes Kaufmann Fund II | 44% | 1.56% |
| Allspring SMID Cap Growth Fund · WFDDX, WFDSX, WFDAX, WDSCX, WFDRX | 22% | 0.79% |
Advisers
| Firm | Role |
|---|---|
| Federated Advisory Services Company | Adviser |
| Federated Global Investment Management Corp. | Adviser |
Footnotes
- Net assets and holdings count as of April 30, 2026, from the fund's N-PORT filing.
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