13
Morningstar FundInvestor
August 2
013
Leaders
Third Avenue Real Estate Value
TAREX
This global real estate fund gained
9
.
07%
for the year
to date, landing at the top of its category for the
period. Managers Michael Winer and Jason Wolf
follow a deep value strategy and prefer real estate
operating companies over
REIT
s. They run a concen-
trated portfolio of
30
-
40
holdings and will build up
cash when valuations aren’t appealing. Big winners
outside of
REIT
s, such as
Lowe’s
LOW
and
Forest
City Enterprises
FCE
.A, posted double-digit gains.
DoubleLine Total Return Bond
DBLTX
This mortgage-focused fund lost
0
.
56%
since the
beginning of
2013
, better than
94%
of other interme-
diate-term bond funds. Manager Jeffrey Gundlach,
in contrast to other intermediate-term bond managers,
invests almost exclusively in mortgages, split be-
tween riskier nonagency mortgages and high-quality
government and prime mortgages. The fund’s non-
agency mortgage stake performed well in the first
quarter of
2013
. Also, the portfolio’s duration is
also significantly shorter than the category average,
which meant that the fund held up better than
most of its peers when rates rose.
Fidelity Large Cap Stock
FLCSX
This large-blend fund gained a whopping
23
.
81%
for
the year to date, better than
93%
of its category
peers. Manager Matthew Fruhan keeps the portfolio
roughly split between steady-growing stocks and
more economically sensitive companies and buys
when prices are below his expectations based on
earnings growth. Since the beginning of this year the
fund’s overweighting in financial-services stocks
helped as that sector outperformed, and good stock
picks in financial-services and technology stocks
boosted performance even more. Top holdings like
J.P. Morgan Chase
JPM
,
Wells Fargo
WFC
,
and
Google
GOOG
posted double-digit returns.
Laggards
Longleaf Partners
LLPFX
This large-blend fund delivered a
15
.
61%
return for
the year to date, placing it behind
87%
of its category
peers. Managers Mason Hawkins and Staley Cates
are deep-value managers and not shy about holding a
very concentrated portfolio, deviating from bench-
mark weightings, and holding on to picks even as
they get pummeled in the short term. Since the begin-
ning of
2013
the fund suffered for its overweightings
to basic materials and communications and its under-
weightings in health care and industrials. Its cash
stake was also higher than
10%
, which kept the fund
from participating fully in the market’s rise.
Vanguard FTSE All-World Ex-U.S. Small Cap
Index
VFSVX
This foreign small-cap index fund returned
5
.
23%
since the beginning of
2013
, trailing
86%
of the
foreign small/mid-blend category. This fund tracks
the Vanguard
FTSE
Global Small Cap ex-
US
Index,
which (among other differences from the typical fund)
has a substantially larger weighting to Canadian
stocks and a lower weighting to eurozone stocks than
the typical foreign small/mid-blend fund does,
which hurt performance as Canadian stocks under-
performed and eurozone stocks outperformed this
past year.
Janus Twenty
JAVLX
This large-growth fund gained
14
.
41%
since the be-
ginning of
2013
, worse than
86%
of its category
peers. Ron Sachs managed the fund from January
2008
through mid-May
2013
, after which Marc
Pinto replaced him as manager. Sachs ran a concen-
trated portfolio of
35
to
40
stocks, which he se-
lected based on his estimates of long-term revenue
growth potential. Pinto has also suggested that
he will keep the fund concentrated but will not stash
as many assets in the top names. Since the beginning
of the year several stock picks, particularly in the
industrials and technology sectors, have not worked
out. In particular,
Apple
AAPL
and Japanese in-
dustrials company Fanuc held almost
15%
of the port-
folio between them and had double-digit losses.
œ
Contact Kailin Liu at
Ten Worst-Performing Funds
Fund Name
YTD Cat Rank %
FPA Capital
99
Hussman Strategic Total R 99
Royce Low Priced Stock Sv 99
Amana Growth
98
First Eagle US Value A 98
Janus Overseas T
98
PIMCO Inflation Response 98
Permanent Portfolio
98
Appleseed
97
Royce Premier Invmt
97
Ten Best-Performing Funds
Fund Name
YTD Cat Rank %
Artisan International Val
1
ClearBridge Aggressive Gr
1
Fairholme Focused Income 1
Invesco Equity and Income 1
Oakmark International I
1
PIMCO Fundamental Advtg A 1
PRIMECAP Odyssey Growth 1
T. Rowe Price Media & Tel
1
Third Avenue Real Estate 1
Vanguard Precious Metals 1
Third Avenue Real Estate Tops Its Peers
Leaders & Laggards
|
Kailin Liu
