UMB Fund Has Two-Pronged Attack; Charts Assist In Hunt; Scout Small Cap uses fundamental research, technical analysis tools.(MUTUAL FUNDS)(MUTUAL FUND PROFILE)

Byline: MURRAY COLEMAN

Institutional money manager David Bagby spun UMB Scout Small Cap Fund in a new direction when he took its reins four years ago.

The fund had been pursuing stocks selling well below their proper values. Bagby switched to a style that used fundamental and technical analysis to find growth stocks poised for big gains.

"I don't necessarily agree that the lower a stock's price, the more valuable it becomes," said Bagby, 54. "More often than not, prices will continue to fall."

The fund also widened its field. It had invested only in firms near Kansas, Mo. That's where its parent, UMB Financial, is based. Besides 11 retail funds, UMB …