This fund has an even spread across the market cap scale - investing in large, mid and small-cap companies.

"We believe small-cap companies seem to be an area of potential growth," he explained.

"It's difficult for small-cap companies to get the investors' attention between Thanksgiving and Christmas," he said.

The reports focus on stocks of small-cap companies in six southern states, ranging from Texas to Florida.

Even when small-cap companies have earnings, however, they rarely pay dividends.

"Today, things are far more concentrated, and the small-cap companies just don't make it onto the radar screens of the big firms."

In 2000 (through Dec. 28), especially among small-cap companies, there was an extraordinary spread between growth and value stocks.

"Insiders play for value, and they're saying there's a lot of value in these small-cap companies."

Larger companies have been acquiring small-cap companies this year at a furious pace.

Many people are afraid of small-cap companies and call them risky, and they are.