In this report, I take a look at LSVEX in comparison to Spyder. LSVEX is an investment that seeks long-term growth of capital. Under normal circumstances, the fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities. The equity securities in which the fund invests are mainly common stocks. Although the fund may invest in securities of companies of any size, the fund generally invests in companies with market capitalizations of $1 billion or more at the time of purchase. Another comparable stock of LSV was DFA. DFA is a stock that is a low cost fund family that uses passive investing, and emphasizes small cap and value investing. As where LSV emphasizes large cap companies.
Upon calculating each return, standard deviation, and sharpe ratio for both LSVEX and Spyder, I reached calculations of 0.01255779, 0.048744, and 0.23711434 for LSVEX. Spyder caluclations came out as 0.01292704, 0.037902, 0.31468238. These calculations are very similar which infers that each of these have similar positive profits. To look at a more in depth look at both of these stocks, I ran a regressions for the CAPM and the 3 Factor Model.
My calculations for the regressions for LSVEX came out to an alpha of -.005 which infers that the alpha is not significant since the number is far from 1. Spyder came out to -.007 which is also not a significant alpha due to being closer to 0.
Taking all of this into consideration, I would recommend sticking to Spyder due to it slightly performing higher in the market. Both of these are similar but LSVEX slightly under performs compared to the market. So buy Spyder!