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Byline: PAUL KATZEFF
Tom Barry is licking his chops. He feels like a baseball batter staring at a fat pitch coming right down the middle. He's cranked up to slug it out of the park.
As manager of the $492 million Bjurman, Barry Micro-Cap Fund, he's already outperformed the market this year and the past three years. Now Barry, 58, feels the market is about to rotate in favor of his smaller-cap growth strategy, giving him even more of an edge.
Going into Thursday, his fund was up 5.86% for the year. That was 1.16 percentage points ahead of the S&P 500 and 1.73 points in front of his small-cap peers tracked by Morningstar Inc.
Over three years, his average annual gain is 6.87%. That's a whopping 20 points better than the bogey and 22 points better than his peers.
In that time, it has topped 65% of all funds, entitling it to IBD's 36-month performance rating of C. Its modest rating reflects crowding out by the history-making returns of bond funds during the bear market's worst days. We caught up with Barry earlier this week.
IBD: Small caps typically outperform coming out of a recession. When are we going to see that happen this time?