[DesertCat]

If you are interested in more exposure to small caps, I believe you can get index funds that track the Russell indexes, which cover most of the equity universe all the way down to (I think) microcaps. Your benefits from doing this over picking a specific small cap fund is that it is likely to outperform most small cap managers.

To sound like I'm going to contradict everything I just said (I'm not though), I do believe small caps are an area of opportunity where good managers can overcome their costs and market efficiencies to beat indexes. Personally, I only invest in small caps because I find the best opportunities there. But I don't invest in mutual funds and other managers, and don't know of any good ones to recommend.

The problem with small cap funds is, if you are a top notch small cap fund manager, your fund will grow so fast and you'll attract so large an inflow of new funds that the fund will quickly grow too big to take full advantage of small cap opportunities, so results are likely to fade over time. Plus the manager will want to make more money so they'll move up into mid-caps and large-caps, where returns will likely be mediocore, but the fund will make a ton more fees off a much larger fund size.

It's the same principle of a good poker player killing the fish at 10/20 for 2BB an hour moving up to 100/200 and only beating it for 1/2 BB an hour. The poker player makes more money, but the percentage return on his portfolio (bankroll) declines. You as a mutual fund owner care only about percentage return on your investment, not gross profits for the fund.

Lastly, you need to consider that small caps have been on a big tear the last year and a half or so, so any fund results you look at are going to be skewed, i.e. even the bad funds have done well lately. And reversion to the mean indicates that small caps in aggregate are likely to be worse performers in the future.