(PUB) Morningstar FundInvestor - page 65

13 Morningstar FundInvestor February 2014
Leaders
Fidelity OTC FOCPX
This large-growth fund’s hefty stake in technology
stocks helped drive its peer-topping 43 .3% return
during the past 12 months. The fund uses the tech-
heavy Nasdaq Composite Index as its benchmark
and holds more than half of its assets in technology
stocks. The fund’s top performers included social-
media titan Facebook FB and video-game developer
Electronic Arts EA, which returned roughly 100%
and 68%, respectively, during the 12 months through
January 2014. A slug of strong-performing biotech-
nology firms, such as Gilead Sciences GILD, added
to returns.
PRIMECAP Odyssey Aggressive Growth POAGX
This contrarian growth fund’s 47% gain trounced
the Russell Mid Cap Growth Index by more than 20
percentage points during the trailing one-year period.
Strong stock selections within the technology and
health-care sectors pushed the fund to the top of the
mid-growth pack as well. Top contributors included
memory-chip manufacturer Micron Technology MU
and biotechnology firm Biogen Idec BIIB, which
gained 205% and 100%, respectively, during the
period. It benefited from its stake in Tesla Motors
TSLA , which returned more than 360% during the
period. Following a run of strong performance, the
fund closed to new investors in January 2014.
Oppenheimer Global Opportunities OPGIX
This world-stock offering’s 35.3% gain during the past
12 months beat 98% of category peers. Manager
Frank Jennings willingness to take concentrated posi-
tions in small caps paid off. Top holding Nektar
Therapeutics NKTR, a clinical-stage biotech firm,
was the fund’s leading contributor. Other top con-
tributors included London-based clothing retailers
SuperGroup SEPGY and Asos ASOMY, which
each posted triple-digit returns.
Laggards
Artisan Value ARTLX
Slumping materials firms weighed on this large-value
fund’s results during the past 12 months. The fund’s
13 .2% return lagged 95% of category peers, partly
because of holdings such as gold-mining firm New-
mont Mining NEM and potash producer Mosaic
MOS, which both suffered double-digit losses during
the period. The fund’s energy holdings also proved
a headwind. Top-10 holding Chevron CVX eked out
a 0 .3% gain, while National Oilwell Varco NOV
managed just a 2 .4% return in the trailing one-year
period. In late 2013, comanager Scott Satterwhite
announced he will retire in 2016, though lead manager
George Sertl and comanager Jim Kieffer will con-
tinue to run the fund.
Appleseed APPLX
This all-cap value fund’s bet on gold dragged on per-
formance during the trailing year. Its 10.7% return
lagged both the S &P 500 Index and the mid-value
category average by more than 10 percentage points.
The fund’s five-person management team follows
a socially responsible mandate and makes concen-
trated investments in a portfolio of just 25 stocks.
They’ve also held roughly one fourth of the fund’s
assets in cash and gold since mid-2009. That’s helped
the fund weather downdrafts, but it has weighed
on results during recent rallies. The fund’s top holding,
Central GoldTrust GTU, a closed-end fund hold-
ing gold bullion, declined in price by 30. 5% during the
past 12 months.
Tweedy, Browne Worldwide High Dividend
Yield Value TBHDX
This foreign large-value fund tends to lag during
equity rallies. The trailing one-year period was no
exception as the fund’s 9. 3% gain lagged more
than 85% of peers. A sizable cash stake (more than
10% of assets as of late 2013) served as a head-
wind as international equities generally rose. A
number of the fund’s multinational holdings strug-
gled, too. Consumer-goods firm Unilever UL lost
1.7%, while Philip Morris International PM lost
more than 7% during the period. œ
Contact Flynn Murphy atflynn.murphy@morningstar.com
Ten Worst-Performing Funds
Fund Name YTD Cat Rank %
Harding Loevner Internati 100
Vanguard Managed Payout I 100
Vanguard Precious Metals 100
Royce Special Equity Mult 99
Wasatch Core Growth 99
CGM Realty 98
Dreyfus Appreciation Inve 98
Loomis Sayles Investment 98
Templeton Global Bond A 98
Third Avenue Internationa 98
Ten Best-Performing Funds
Fund Name YTD Cat Rank %
DoubleLine Total Return B 1
Fidelity Independence 1
Fidelity OTC 1
Fidelity Strategic Real R 1
First Eagle Overseas A 1
Janus Contrarian T 1
Oppenheimer Global Opport 1
PRIMECAP Odyssey Growth 1
Vanguard Capital Opportun 1
Weitz Value 1
Tech and Health-Care Power
Top Performers
Leaders & Laggards | Flynn Murphy