3
Morningstar FundInvestor
April 2
013
Fairholme Focused Income
FOCIX
has proved to be
something of an odd duck in its three years of exis-
tence. Bruce Berkowitz has invested $
1
million in the
fund (he says he’s the largest shareholder). The
fund is aggressive not just on credit quality but also
with concentration and equity exposure. Berkowitz
has
41%
of assets in debt of bond insurer
MBIA
MBI
,
and stocks have topped
28%
of the portfolio at
times. The idea here is to be an opportunistic income
investor rather than what you usually see at a
bond fund—a focus on reducing risk or targeting a
yield. Berkowitz has a good track record with
distressed investing, so we rate it Bronze. However,
the concentration risk means it should be only a
niche fund. In addition, the expense ratio has risen
to
1%
, which is a tad pricey for its category.
Finally, Chuck Akre has been at
Akre Focus
AKREX
for three years now. Given his long track record
at
FBR
Focus, it’s no surprise he’s over the $
1
million
threshold here. Akre has built up a solid team of
analysts behind him, too. The fund charges
1
.
40%
,
which is a bit high for the peer group but not extreme.
In addition, it has been coming down some as
assets have grown. Akre’s style is a modest growth
approach that features a concentrated portfolio
of steady growers. The fund rates a Bronze thanks to
Akre’s excellent record and our growing comfort
with the team behind him. It might rate higher if fees
were lower.
œ
Where New Managers Eat Their Cooking
Name
Morningstar
Analyst
Rating
Strong
Track
Record
Elsewhere
Manager
Tenure
(Longest,
in Years)
Prospectus
Net
Expense
Ratio (%)
Morningstar
Analyst
Rating—
People Pillar
Morningstar
Analyst
Rating—
Process Pillar Manager
PM Invests More Than $1 Million
Akre Focus Retail
AKREX
´
Yes
3.58
1.40
∞ ∞
Charles T. Akre Jr.
Ariel Discovery Investor
ARDFX
´
Yes
2.17
1.50
∞ ∞
Kenneth E. Kuhrt; David Maley
DoubleLine Total Return Bond I
DBLTX
‰
Yes
2.92
0.51
∞
¶
Philip A. Barach; Jeffrey E. Gundlach
Fairholme Focused Income
FOCIX
´
Yes
3.17
1.01
∞ ∞
Bruce R. Berkowitz
Fidelity Equity Dividend Income
FEQTX
‰
Yes
1.42
0.67
∞
¶
Scott Offen
Fidelity Magellan
FMAGX
‰
Yes
1.50
0.55
∞
¶
Jeffrey S. Feingold
Fidelity Municipal Income 2015
FMLCX
— Yes
1.83
0.40
— — Mark Sommer; Jamie Pagliocco; Kevin Ramundo
Fidelity Small Cap Stock
FSLCX
´
Yes
1.33
1.12
∞
¶
Lionel T. Harris
GoodHaven
GOODX
´
?
1.92
1.10
∞ ∞
Larry S. Pitkowsky; Keith D. Trauner
Janus Venture T
JAVTX
•
Yes
2.67
0.95
∞ ∞
Chad Meade; Brian A. Schaub
Mutual Global Discovery A
TEDIX
•
Yes
3.25
1.31
∞ ∞
Peter Langerman; Timothy Rankin; Philippe Brugere-Trelat
PIMCO EqS Pathfinder D
PTHDX
´
Yes
2.92
1.24
∞ ∞
Charles M. Lahr; Anne E. Gudefin
Royce Special Eq.Multi-Cap Srvc
RSEMX
´
Yes
2.25
1.39
∞ ∞
Charles R. Dreifus
PM Invests $500,000–$1 Million
T. Rowe Price Media & Telecom.
PRMTX
•
No
3.42
0.83
∞ ∞
Daniel Martino
Fidelity Export & Multinational
FEXPX
— No
3.08
0.82
— — Heather Carrillo
Fidelity Mid-Cap Stock
FMCSX
´
Yes
2.08
0.86
∞ ∞
John D. Roth
Fidelity Value
FDVLX
‰
No
2.83
0.68
∞
¶
Management Team
Janus Contrarian T
JSVAX
— No
1.67
0.76
— — Daniel R. Kozlowski
Janus Global Select T
JORNX
‰
No
0.58
0.98
¶ ¶
George P. Maris
Leuthold Core Investment Retail
LCORX
•
Yes
2.17
1.18
∞ ∞
Douglas R. Ramsey; Matthew B. Paschke
∞
Positive
¶
Neutral
? Open to debate
— Not rated
