13
Morningstar FundInvestor
September 2
014
Leaders
ASTON/Fairpointe Mid Cap
CHTTX
This fund continues to reward patience. After turning
in mediocre relative returns in each year from
2010
through
2012
, the fund delivered excellent results in
2013
and so far in
2014
. Rebounds by long-held
positions such as
Lexmark International
LXK
and
Molson Coors Brewing
TAP
, as well as recently
added names
Alcoa
AA
and
Edwards Lifesciences
EW
, contributed to strong gains this year. The man-
agers build a relatively focused portfolio of about
40
stocks and use a long-term, low-turnover approach.
As a result, it’s not uncommon for the fund to lag in
the short term before recovering nicely. The fund’s
long-term track record ranks among the mid-blend
category’s best.
Third Avenue Value
TAVFX
Third Avenue Value has returned
9%
so far this year,
surpassing its typical world-stock competitor by
more than
3
percentage points. Hong Kong real estate
stocks, which took about
15%
of assets as of June
2014
, have largely driven those results, as names
such as Henderson Land Development, Wheelock and
Co., and Cheung Kong Holdings rebounded after a
rough
2013
. A new lead manager took the reins on
this fund in mid-
2014
, so near-term adjustments to
the portfolio are likely.
Loomis Sayles Bond
LSBRX
Loomis Sayles Bond is on pace to deliver its third
consecutive year of top-quintile results. Its
7
.
4%
year-to-date return easily surpasses its typical multi-
sector-bond rival’s
5
.
3%
gain. The management
team has used flexibility to its advantage, taking
positions in high-yield bonds (
18%
of assets), convert-
ibles (
9%
), and equities (
6%
), all of which have
performed well this year. The portfolio also holds a
roughly
30%
stake in non-dollar-denominated bonds,
which boosted performance in the first half of
2014
.
Laggards
MainStay ICAP Select Equity
ICSLX
MainStay
ICAP
Select Equity’s
5%
year-to-date
return, while respectable in absolute terms, trails
more than
90%
of its large-value peer group. Its two
largest holdings,
General Electric
GE
and
Pfizer
PFE
, have each turned in losses, weighing on results.
The team runs a concentrated portfolio of about
30
stocks and normally keeps about half of the port-
folio in just
10
names, so one or two struggling
picks can have a meaningful impact on performance.
Despite the fund’s recent marks, its long-term
record remains solid.
Oppenheimer International Growth
OIGAX
This fund has finally cooled off. After outperforming
its typical foreign large-growth rival in each calendar
year from
2008
through
2013
, Oppenheimer Inter-
national Growth has lost
1
.
1%
and trailed roughly four
fifths of its peer group for the year to date. A few
lagging stock picks and light exposure to emerging
markets have held the fund back this year. Nonethe-
less, since-inception manager George Evans is sticking
with his patient, theme-based approach, which has
consistently paid off for investors in the long run. In
fact, the fund outperformed all of its competitors
over the trailing
10
-year period.
Delafield Fund
DEFIX
After significantly lagging its typical mid-value peer
in
2013
, Delafield Fund is having another poor
showing for the year to date: Its
3
.
3%
return has
trailed its typical rival by more than
5
percentage
points. The portfolio holds roughly
40%
of assets in
small caps; this has been a significant headwind
as small caps have suffered on valuation concerns.
A
15%
cash stake and several bad picks in the
metals and mining and specialty retail industries
have also hampered returns.
œ
Contact Leo Acheson at
Ten Worst-Performing Funds
Fund Name
YTD Cat Rank %
Vanguard Precious Metals 100
Ariel Discovery Investor
99
CGM Focus
99
Conestoga Small Cap Inves 99
Greenspring
99
Neuberger Berman Genesis 98
Sequoia
98
Third Avenue International
98
Weitz Hickory
98
Artisan Small Cap Value I
97
Ten Best-Performing Funds
Fund Name
YTD Cat Rank %
ClearBridge Aggressive Gr
1
Dodge & Cox International
1
Domini Social Equity Inv
1
Fidelity Capital & Income
1
Fidelity Independence
1
Matthews India Investor
1
Meridian Small Cap Growth 1
Oakmark Select I
1
PRIMECAP Odyssey Aggressi 1
Royce Low Priced Stock Sv 1
Aston/Fairpointe Mid Cap Leads
the Way
Leaders & Laggards
|
Leo Acheson
