...in small-cap stocks.

A suite of strategies that tap into small-cap opportunities


The fund pursues outperformance over the long term using systematic, fundamentally based stock selection tools—with an emphasis on an unemotional, relentlessly disciplined approach.


By combining intensive screening and rigorous first-hand analysis, the fund invests primarily in stocks of high-quality small-cap companies trading at attractive values.

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Investment Approach

Federated's equity investment process begins with a commitment to proprietary research—both fundamental and quantitative. Using that information advantage, investment teams construct their portfolios using strict constraints specific to each fund's investment style.
Views are as of February 6 2018 and are subject to change based on market conditions and other factors. These views should not be construed as a recommendation for any specific security or sector.
Market volatility is an opportunity for our funds. We focus on companies that have secular growth tailwinds. Companies that have innovation, technology, or a new product that’s driving their business.
Client Portfolio Manager Jordan Stuart
I'm Jordan Stuart, a Client Portfolio Manager for the Federated Kaufmann Funds.
How is Federated Kaufmann Small Cap Fund positioned for 2019?
2019 seems to be the year of headwinds that are building, geopolitical, trade, the Federal Reserve, all these things are starting to impact the market. This is why, at Kaufmann, we focus on companies that can control their own destiny. They're secular growers, they're innovators, they've developed technology, or a new product, that they can grow in any kind of environment. Most of the companies that we own are less susceptible to some of the macro events, and even if they are impacted by that, we use that as an opportunity.
How does the Federated Kaufmann team navigate market volatility?
We think market volatility is an opportunity for our funds. We focus on companies that have secular growth tailwinds, companies that have innovation, technology, or a new product that's driving their business. So they tend to be less sensitive to some of the macro headwinds, and we use some of the volatility as an opportunity. If those stocks tend to sell off in a macro event, we have cash available at most times to purchase those names that we think have good fundamentals at a better price.
Mutual funds are subject to risks and fluctuate in value.

Investing in IPOs involves special risks such as limited liquidity and increased volatility.

Small company stocks may be less liquid and subject to greater price volatility than large capitalization stocks.

The quantitative models and analysis used by the MDT Funds may perform differently than expected and negatively affect fund performance.

Past performance is no guarantee of future results.

Investors should carefully consider the fund's investment objectives, risks, charges and expenses before investing. To obtain a summary prospectus or prospectus containing this and other information, call us or view the prospectus provided on this website. Please carefully read the summary prospectus or prospectus before investing.

Federated Securities Corp., Distributor

18-73479 (3/19)