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Morningstar FundInvestor
September 2015
Leaders
Clipper
CFIMX
Clipper, with a Morningstar Analyst Rating of Bronze,
continues to turn a corner, particularly since it
underwent a comanager change at the start of
2014
.
This concentrated, financials-heavy fund has topped
97%
of category peers since the start of
2015
through
strong stock selection. In particular, it has benefited
from its position in
Amazon.com
AMZN
, whose stock
has soared this year amid reports of expanded
profitability and dramatic growth in its Amazon Web
Services segment. Other key holdings that have
delivered outsize performance this year are
GOOGL
,
Bank of New York Mellon
BK
,
Markel
MKL
,
Charles Schwab
SCHW
, and
UnitedHealth
UNH
.
DoubleLine Total Return Bond
DBLTX
Manager Jeffrey Gundlach continues to shine as he
has steered this large mortgage-focused bond fund
to an impressive long-term record. The fund has
bested
99%
of its peers over the past five years and
98%
of its peers since the start of the year. Helping
to drive performance in
2015
’s first half were the fund’s
investments in credit-sensitive, nonagency residen-
tial mortgage-backed securities. Some government
agency
RMBS
—specifically, inverse interest-only
bonds—have done well. The fund carries the Not
Ratable designation owing to DoubleLine’s unwilling-
ness to provide the information needed to issue a
Morningstar Medalist rating.
Fidelity Overseas
FOSFX
This Bronze-rated international-stock fund has returned
an impressive
7
.
2%
since the start of the year, weath-
ering the August market downturn well. As a result, it
has topped
99%
of its foreign-stock peers this year.
Manager Vince Montemaggiore has guided this fund
to strong performance since taking over in January
2012
, with category-leading, three-year annualized
returns of
12
.
9%
. Montemaggiore has topped his cate-
gory peers through strong stock selection, including
making winning investments across a variety of
sectors, including
UBS
UBS
,
Sanofi
SAN
,
Nestle
, and
BT Group
BT
.A.
Laggards
FPA Capital
FPPTX
Currently mired in a slump, Bronze-rated
FPA
Capital
can be expected to see its performance deviate widely
from other funds, as it invests without much regard
for sector diversification in a handful of mid- and small-
cap stocks at deep discounts. Over the past several
years, this fund has felt pain from hoarding a large
cash stake during a rising market and taking a large
stake in energy stocks at a time that oil prices have
tanked. Energy firms haven’t been the only detractors,
however. The fund also has been hit hard by positions
in for-profit education companies like
Apollo Educa-
tion Group
APOL
and
DeVry
DV
, which have struggled
amid regulatory scrutiny, profit pressures, and even
unfavorable demographics, as a low birth rate means
fewer high school graduates in the near term.
Loomis Sayles Investment Grade Bond
LIGRX
This Gold-rated, intermediate-term-bond fund often
takes a bargain-hunting, corporate-heavy approach to
identifying investment-grade debt and has broad
flexibility to invest outside the United States and in
non-U.S. dollar-denominated fare, including both
sovereign and corporate debt. Its contrarian approach
has served the fund well over the long term, as the
fund has generated stellar five- and
10
-year perform-
ance. Since the start of
2015
, however, the fund has
struggled, owing to its stake in non-U.S. dollar curren-
cies, with bonds denominated in Canadian, Australian,
and New Zealand dollars being especially hard-hit.
Also weighing on the fund has been major declines in
one of the few common stocks it holds,
Corning
GLW
.
Artisan International
ARTIX
Silver-rated Artisan International has lagged fully
98%
of its foreign-stock peers since the start of
2015
amid a
5
.
7%
decline. Among the culprits are an above-
average stake in China, including a large position
in the beleaguered
Baidu
BIDU
, which is down
35%
for the year, and in other names like
Grupo Televisa
TV
,
Toyota
, and
ASML Holding
ASML
.
K
Ten Worst-Performing Funds
Fund Name
YTD Cat Rank %
Longleaf Partners
100
Delafield Fund
99
GoodHaven
99
Loomis Sayles Investment
99
Royce Special Equity Mult
99
AMG Yacktman Focused Serv 98
AMG Yacktman Service
98
Artisan International Inv
98
FPA Capital
98
Janus Contrarian T
98
Ten Best-Performing Funds
Fund Name
YTD Cat Rank %
Fairholme
1
Fairholme Focused Income 1
Fidelity Overseas
1
Scotia Dynamic U.S. Growt
1
Sequoia
1
T. Rowe Price Capital App 1
T. Rowe Price Global Tech 1
T. Rowe Price Health Scie 1
Thornburg Value A
1
ASTON/Montag & Caldwell B 2
Clipper on the Rebound
Leaders & Laggards
|
Robert Goldsborough