13
Morningstar FundInvestor
June 2
014
Leaders
ClearBridge Aggressive Growth
SHRAX
This fund typically does well in up markets, and the
past year has been no exception: The fund’s been one
of the large-growth category’s top performers. Man-
agers Richie Freeman and Evan Bauman aren’t shy
about building big positions in individual names and
sectors; this can make for some volatility, but it has
worked over time. Holding more than a third of assets
in health care has helped over the trailing year, with
longtime biotech picks
Biogen Idec
BIIB
(nearly
10%
of assets) and
Forest Laboratories
FRX
(
5%
)
boosting returns. Shunning stodgier consumer defen-
sive names has also been an advantage, though
that positioning means the fund may not hold up as
well in a market pullback.
Dodge & Cox Global Stock
DODWX
The managers running this fund are known for focus-
ing on the long term and buying stocks when they’re
out of favor. That strategy can lead to some short-
term pain but also big payoffs when their patience is
rewarded. That’s been the case recently, as long-
time laggard
Hewlett-Packard
HPQ
rallied. Mean-
while, the fund’s above-average emerging-markets
stake relative to peers’ hasn’t held it back over the
past year. In fact, the managers didn’t hesitate to
buy Indian bank
ICICI
IBN
when it sold off in
2013
, a
move that has since boosted performance.
Janus Contrarian
JSVAX
This fund’s all-cap nature has helped it stand out
versus large-blend peers. Owning a bigger slug of
small- and mid-cap names has certainly been an
advantage over the past year compared with peers
that focus more heavily on large caps. What’s more,
the fund’s tendency to invest in lower-quality, debt-
laden companies that lack economic moats has
worked in this market environment. The fund has
done relatively well since manager Dan Kozlowski
took over in
2011
, though it’s yet to be tested in a
big market sell-off on his watch. As a result, it earns
a Morningstar Analyst Rating of Neutral.
Laggards
Goodhaven
GOODX
Led by former comanagers of
Fairholme
FAIRX
, Larry
Pitkowsky and Keith Trauner, this value-oriented fund
is not afraid to look different from the competition,
which can also result in out-of-step performance.
A double-digit cash stake weighed heavily on results
over the past year, as the fund saw inflows that the
managers couldn’t quickly put to work in an up market.
A relatively concentrated portfolio of out-of-favor
turnaround plays has hurt lately. For instance,
Walter
Investment Management
WAC
, a top position, has
dropped more than
20%
over the past year. A sizable
position in
Barrick Gold
ABX
also hurt in
2013
.
Marsico Growth
MGRIX
This fund has cooled off after a relatively strong
2013
,
leading to a weak showing for the one-year period.
Several of the fund’s technology and financials picks
have weighed on recent performance, including
LinkedIn
LNKD
and
Visa
V. More concerning than
short-term underperformance, though, is the insta-
bility of Marsico’s investment team, which has faced
several departures of analysts and managers, as
well as broader concerns at the firm level after
several debt restructurings. For that reason, the fund
receives a Morningstar Analyst Rating of Neutral.
Baron Opportunity
BIOPX
An above-average technology stake (about twice the
category norm) hasn’t done this fund any favors lately.
Several picks in the sector have weighed on relative
performance over the past year, including
Angie’s
List
ANGI
and LinkedIn, pushing the fund toward the
bottom of the mid-growth category. Over the longer
term, the fund has a stronger record under manager
Michael Lippert, and a relatively small asset base
is also a plus. It retains its Bronze Analyst Rating.
œ
Contact Katie Reichart at
Ten Worst-Performing Funds
Fund Name
YTD Cat Rank %
CGM Focus
100
CGM Realty
100
Ariel Discovery Investor
99
Greenspring
99
Baron Opportunity Retail
98
Berwyn
98
Weitz Hickory
98
Conestoga Small Cap
97
Scout Core Plus Bond Inst
97
Auxier Focus Inv
96
Ten Best-Performing Funds
Fund Name
YTD Cat Rank %
ClearBridge Aggressive Gr
1
Dodge & Cox International
1
Janus Contrarian T
1
Matthews India Investor
1
Oakmark Select I
1
Vanguard PRIMECAP Core In 1
Virtus Foreign Opportunit
1
Fidelity Independence
2
Manning & Napier Equity
2
Royce Low Priced Stock Sv 2
ClearBridge Aggressive Growth Rolls On
Leaders & Laggards
|
Katie Reichart
