Fund Evaluator:

Penn Capital Special Sits Sm Cp Eq Inst Overview

Penn Capital Special Sits Sm Cp Eq Inst (PSCNX) is an actively managed U.S. Equity Small Blend fund. Penn Capital Management launched the fund in 2015.

The investment seeks to provide capital appreciation. The fund seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its net assets in the equity securities of small-capitalization companies. Small-capitalization companies are defined for this purpose as companies with market capitalizations at the time of purchase between the lesser of $100 million or the market capitalization of the smallest company included in the Bloomberg US 2000 Index and the greater of $4 billion or the market capitalization of the largest company included in the Bloomberg US 2000 Index.

About Penn Capital Special Sits Sm Cp Eq Inst (PSCNX)

There are 3 members of the management team with an average tenure of 3.85 years: Michael Kehoe (2026), Christopher Paciello (2025), Eric Green (2015). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: Russell 3000 TR USD index with a weighting of 100% and Bloomberg US 2000 TR USD index with a weighting of 100%. Penn Capital Special Sits Sm Cp Eq Inst has 84 securities in its portfolio. The top 10 holdings constitute 19.8% 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.

Penn Capital Special Sits Sm Cp Eq Inst is part of the Equity global asset class and is within the U.S. Equity fund group. Penn Capital Special Sits Sm Cp Eq Inst has 4.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 94.0%. There is 4.0% 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). Penn Capital Special Sits Sm Cp Eq Inst has 2.0% of the portfolio in cash.

Assets Under Management

The fund has $98 million in total assets, which is below the $694 million average for the Small 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.

PSCNX 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 Penn Capital Special Sits Sm Cp Eq Inst expense ratio is high compared to funds in the Small Blend category. Penn Capital Special Sits Sm Cp Eq Inst has an expense ratio of 1.09%, which is 4% higher than its category average, making the fund expense ratio grade a C. 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. Penn Capital Special Sits Sm Cp Eq Inst has a portfolio turnover rate of 91%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 65% for the Small Blend category.

Recently, in the month of June 2026, Penn Capital Special Sits Sm Cp Eq Inst returned 7.0%, which earned it a grade of B, as the Small Blend category had an average return of 5.9%. 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.

Penn Capital Special Sits Sm Cp Eq Inst has a trailing yield of 0.00%, which is below the 0.41% 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.

Penn Capital Special Sits Sm Cp Eq Inst Grades

Year to date, the fund has returned 28.9%, 7.2 percentage points better than the category, which translates into a grade of A. The fund has returned 39.3% over the past year (grade of B), 18.1% over the past three years (grade of B) and 8.0% per year over the past five years (grade of C) and 13.9% per year over the past 10 years (grade of A).

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