Fees on the firm's open-end and exchange-traded funds are a weakness, contributing negatively to the rating and creating a larger performance hurdle on funds. On average, Perritt charges fees on its funds that are in the most expensive quintile of similarly distributed funds. With the current market environment of fee compression, this is cause for concern, as investors may flock over time to alternate asset managers to get a better deal. In terms of risk-adjusted performance, the Perritt open-end and exchange-traded funds fall short of competitors, with an average overall Morningstar Rating of 1.5 stars. A sign of strength at Perritt is its longest-tenured management, which offers an average asset-weighted tenure of 26 years at the firm. This accumulation of experience builds confidence that the group can navigate a variety of market environments adeptly.
Perritt lags peer asset managers in a number of stewardship qualities, resulting in a Below Average Parent Pillar rating.
United States