Fund Evaluator:

Paradigm Select Overview

Paradigm Select (PFSLX) is an actively managed U.S. Equity Mid-Cap Blend fund. Paradigm Funds launched the fund in 2005.

The investment seeks long-term capital appreciation. The fund invests primarily in the common stocks of companies with market capitalizations between $500 million and $10 billion at the time of purchase that the Advisor believes have the potential for capital appreciation. It may be overweight in certain sectors at various times. Securities are sold when they have realized their anticipated value or if new investment opportunities with higher expected returns are acquired.

About Paradigm Select (PFSLX)

There are 2 members of the management team with an average tenure of 13.34 years: Candace Weir (2013), Amelia Weir (2013). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and Russell 2500 TR USD index with a weighting of 100%. Paradigm Select has 44 securities in its portfolio. The top 10 holdings constitute 50.1% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Paradigm Select is part of the Equity global asset class and is within the U.S. Equity fund group. Paradigm Select has 2.8% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 84.1%. There is 2.8% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Paradigm Select has 13.2% of the portfolio in cash.

Assets Under Management

The fund has $274 million in total assets, which is below the $1 billion average for the Mid-Cap Blend category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

PFSLX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Paradigm Select expense ratio is high compared to funds in the Mid-Cap Blend category. Paradigm Select has an expense ratio of 1.26%, which is 29% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Paradigm Select has a portfolio turnover rate of 15%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 51% for the Mid-Cap Blend category.

Recently, in the month of June 2026, Paradigm Select returned 12.2%, which earned it a grade of A, as the Mid-Cap Blend category had an average return of 4.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Paradigm Select has a trailing yield of 0.00%, which is below the 0.47% category average. The fund normally distributes its income annually and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Paradigm Select Grades

Year to date, the fund has returned 50.5%, 35.1 percentage points better than the category, which translates into a grade of A. The fund has returned 81.1% over the past year (grade of A), 28.6% over the past three years (grade of A) and 15.1% per year over the past five years (grade of A) and 17.9% per year over the past 10 years (grade of A).

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