Small-Capitalization Funds It’s getting harder to classify these funds because some small new company can go public these days with no earnings and overnight see its market capitalization suddenly spike to $1 billion or more. Typically, small-cap funds invest in companies with market caps that range from about $250 million to $3 billion. This reflects an ultra-aggressive approach, which can potentially produce great returns. Small-cap investing is a lot like betting on the hare instead of the tortoise.
