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Morningstar FundInvestor
July 2015
Leaders
CGM Focus
CGMFX
Ken Heebner’s fund needed a rally, and it’s up
5
.
4%
to land in the top
2%
of its peer group for the year to
date. It was in a brutal slump in part because of a
23%
short against Treasuries. However, that’s helped
this year, as have long positions in
Fiat Chrysler
Automobiles
FCAU
and
Lennar
LEN
. This fund’s
turnover is
266%
, though, so it won’t be certain
what the drivers were until the second-quarter port-
folio comes out.
Thornburg Value
TVAFX
This fund suffered an awful stretch from
2010
through
2012
but has since rebounded nicely. Giving an
overweighting to health care has worked well, but
so have some well-placed consumer bets such
as
Starbucks
SBUX
and
Amazon.com
AMZN
.
Sequoia
SEQUX
This closed fund has
26%
of assets in
Valeant Phar-
maceuticals International
VRX
. Valeant is up
67%
for the year to date. As a result, it’s up
10%
and
in the top
2%
of its category. That’s pretty much the
whole story. The fund actually has quite a few names
that are in the red, including
Berkshire Hathaway
BRK
.A,
Fastenal
FAST
, and
Precision Castparts
PCP
.
Dreyfus Opportunistic Small Cap
DSCVX
David Daglio’s bold fund is usually at the top or bottom
of fund rankings. This year it is up
10%
and in the top
1%
of its peer group. He concentrates the portfolio on
four sectors: technology, industrials, consumer cycli-
cals, and financials. His strategy is an unusual blend
of value and growth names, and this year he’s hitting
on a lot of winners from both sides such as
SVB
Financial
SIVB
and
Infoblox
BLOX
.
Laggards
Janus Contrarian
JSVAX
How the heck did a large-blend fund that has an over-
weighting in health care end up with a
7%
year-to-
date loss? Dig into the portfolio and you’ll see some
really beaten-down value stocks. When investors
decide a battered stock is a value trap instead of a
value, it can get ugly. Of course, all these holdings
could rally, but for now it’s not pretty. Number-two
holding
United Continental Holdings
UAL
is down
20%
. Then there’s
Motorola Solutions
MSI
down
14%
,
Knowles Corp
KN
down
24%
, and
Lands’ End
LE
down
55%
.
AMG Yacktman Focused
YAFFX
Among large caps, even some names considered blue
chips have been singed. This fund is down
5%
and
in the bottom
2%
of its peer group. Only two of this
fund’s top
10
are in the black. Among the hard-hit
are
Procter & Gamble
PG
at negative
13%
,
Oracle
ORCL
down
10%
, and
Twenty-First Century Fox
FOXA
down
15%
. These are the sorts of names that
have propelled the fund to strong long-term returns,
even if they’ve caused it to lag more recently.
FPA Perennial
FPPFX
This fund is getting a new name, manager, and
strategy. On Sept.
1
, Greg Nathan takes over what
will be
FPA US
Value. In the meantime, transpor-
tation stocks like
Knight Transportation
KNX
and
Heartland Express
HTLD
have hurt year-to-date
performance. The fund is flat and in the bottom
2%
of its peer group.
AMG Yacktman
YACKX
The story is the same as that of Yacktman Focused,
only with smaller position sizes. The fund is down
5%
and in the bottom
2%
of its peer group.
Longleaf Partners
LLPFX
Energy stocks are hurting this fund again; it is down
4%
and in the bottom
3%
of its peer group.
Murphy
Oil
MUR
is down
15%
, and old irritant
Chesapeake
Energy
CHK
is down
42%
. A
16%
weighting in
energy and a
0%
weighting in health care is a recipe
for last place in the first half of
2015
.
K
Ten Worst-Performing Funds
Fund Name
YTD Cat Rank %
FPA Perennial
100
Vanguard Long-Term Invest 100
AMG Yacktman Focused Serv 99
Janus Contrarian T
99
Loomis Sayles Investment
99
AMG Yacktman Service
98
FAM Value Inv
98
FPA Capital
98
Loomis Sayles Bond Retail
98
RiverPark/Wedgewood Retai 98
Ten Best-Performing Funds
Fund Name
YTD Cat Rank %
Dreyfus Opportunistic Sma 1
Fairholme Focused Income 1
Scotia Dynamic U.S. Growt
1
T. Rowe Price Capital App 1
Thornburg Value A
1
CGM Focus
2
Eventide Gilead N
2
Fidelity Overseas
2
Fidelity Small Cap Stock
2
Sequoia
2
CGM Focus and Thornburg Value
Are Rocking
Leaders & Laggards
|
Russel Kinnel