Fund Evaluator:
VELA Small-Mid Cap I (VSMMX)
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Best Performing in Mid-Cap Value Over the Last Year
| 41.4% | Fidelity Value Strategies (FSLSX) |
| 39.3% | Fidelity Advisor Mid Cap Value Z (FIDFX) |
| 39.2% | Fidelity Mid Cap Value (FSMVX) |
| 38.8% | Harbor Mid Cap Value Instl (HAMVX) |
| 38.3% | Harbor Mid Cap Value Investor (HIMVX) |
Fund Details
VELA Small-Mid Cap I Overview
VELA Small-Mid Cap I (VSMMX) is an actively managed U.S. Equity Mid-Cap Value fund. VELA Funds launched the fund in 2025.
The investment seeks to provide long-term capital appreciation. The fund, under normal market conditions, invests at least 80% of its net assets in U.S. equity securities with small-mid market capitalizations. The fund may sell (write) covered call options to generate additional income or hedge exposure.
About VELA Small-Mid Cap I (VSMMX)
There are 2 members of the management team with an average tenure of 0.63 years: Jason Downey (2025), Jeannette Hubbard (2025). Management tenure is more important for actively managed funds than passive index funds.
VELA Small-Mid Cap I has 67 securities in its portfolio. The top 10 holdings constitute 29.9% 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.
VELA Small-Mid Cap I is part of the Equity global asset class and is within the U.S. Equity fund group. VELA Small-Mid Cap I has 3.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 96.8%. There is 3.0% 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). VELA Small-Mid Cap I has 0.2% of the portfolio in cash.
Assets Under Management
The fund has $9 million in total assets, which is below the $642 million average for the Mid-Cap Value 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.
VSMMX 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 VELA Small-Mid Cap I expense ratio is high compared to funds in the Mid-Cap Value category. VELA Small-Mid Cap I has an expense ratio of 1.04%, which is 1% 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. A portfolio turnover rate cannot be currently calculated for VELA Small-Mid Cap I. By way of comparison, the average portfolio turnover is 51% for the Mid-Cap Value category.
Recently, in the month of July 2026, VELA Small-Mid Cap I returned 4.9%, which earned it a grade of A, as the Mid-Cap Value category had an average return of 1.7%. 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.
VELA Small-Mid Cap I has a trailing yield of 0.00%, which is below the 0.87% 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.
VELA Small-Mid Cap I Grades
Year to date, the fund has returned 7.2%, 8.3 percentage points worse than the category, which translates into a grade of F.
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VSMMX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| VSMMX Return (NAV) | 4.9% | 4.5% | na | na | na | na |
| VSMMX Grade | A | D | na | na | na | na |
| +/- Category | 3.2% | -1.5% | na | na | na | na |
| Mid-Cap Value Avg | 1.7% | 6.0% | 23.1% | 13.4% | 9.4% | 10.1% |
| VSMMX Tax Cost Ratio | na | na | na | na | na | na |
VSMMX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| VSMMX Return (NAV) | 7.2% | na | na | na | na | na | na | na | na | na | na |
| VSMMX Grade | F | na | na | na | na | na | na | na | na | na | na |
| +/- Category | -8.3% | na | na | na | na | na | na | na | na | na | na |
| Mid-Cap Value Avg | 15.5% | 9.9% | 11.8% | 13.9% | -8.2% | 27.5% | 3.8% | 26.3% | -13.4% | 14.1% | 17.4% |
| Risk Measures | |
| Standard Deviation: | na |
| Total Risk Index: | na |
| Category Risk Index: | na |
| Category Risk Grade: | |
| Beta: | na |
| R-Squared: | na |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Small-Cap Blend |
| Bond Investment Style: | na |
| Yield: | -- |
| Dividend Distribution: | Annually |
| Cap Gains Distribution: | Annually |
| Total Assets: | $9 Mil |
| Fund Total Assets: | $ 10 Mil |
| Share Class Type: | Inst |
| Portfolio Turnover: | na |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 0.6 years | |||
| Average Tenure: 0.6 years | |||
| Managers (Year): Downey Jason (2025), Hubbard Jeannette (2025) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 67 |
| % in Top 10 Holdings: | 29.9% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 3.0% |
Portfolio Allocation |
|
| Domestic Stock: | 96.8% |
| Foreign Stock: | 3.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 0.2% |
Purchase Information
| Fund Family: | VELA Funds |
| Phone Number: | 833-399-1001 |
| Website: |
| Status: | Open |
| Inception Date: | December 15, 2025 |
| Min. Initial Purchase: | $2,500 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | 0.00% |
Expenses and Fees | |
| Expense Ratio (%): | 1.04% ( Rating : High ) |
| Category Average Expense Ratio (%): | 1.03% |
| Share Class: | VELA Small-Mid Cap I |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
