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13 Morningstar FundInvestor January 2016
Leaders
T. Rowe Price Blue Chip Growth TRBCX
This fund has continued to thrive. Longtime manager
Larry Puglia led the fund to an 11.2% return in
2015, which bested 97% of its large-growth peers.
Among Puglia’s biggest gainers were longtime
holding and top position Amazon.com AMZN, Netflix
NFLX, Alphabet GOOGL, Starbucks SBUX, and
Facebook FB. That was more than enough to offset a
top-20 position in Valeant Pharmaceuticals VRX .
PIMCO Income PONAX
This fund’s 1.8% return in 2015 topped 95% of
funds in the multisector-bond Morningstar Category.
The fund, which has a Morningstar Analyst Rating
of Silver, is capably run by Dan Ivascyn and his coman-
ager, Alfred Murata. They have delivered strong
longer-term returns and meaningful income without
returning capital. In 2015, a long U.S. dollar bias,
particularly relative to the euro and the yen, helped
performance, as did emerging-markets debt and
securitized credit, particularly in nonagency mortgage-
backed securities.
American Funds New World NEWFX
This conservatively managed fund outperformed 95%
of emerging-markets funds, but it still lost nearly
6%. The fund’s managers outperformed peers through
strong stock selection in 2015 , including in firms
such as China-based online travel firm Ctrip.com CTRP,
Danish pharmaceutical firm Novo Nordisk NONOF,
Alphabet GOOGL, and South African Internet firm
Naspers NPN. In addition to emerging markets,
the fund long has invested in developed-country stocks,
which helps to damp volatility.
Laggards
Aston/TAMRO Small Cap ATASX
This fund trailed 98% of its small-growth peers in 2015,
producing a nearly 11% loss in the process. Its biggest
losers in 2015 included Iconix Brand Group ICON,
United Natural Foods UNFI, Clovis Oncology CLVS,
Interactive Intelligence ININ, and Cepheid CPHD,
all of which lost more than 30%. Despite the fund’s re-
cent weakness, it retains an Analyst Rating of
Silver; the fund has posted terrific performance since
its inception and has a history of bouncing back
from short-term slumps. As such, this fund still looks
like a solid small-cap option.
Dodge & Cox International Stock DODFX
A year after top-decile performance in the foreign
large-blend category helped its managers capture the
Morningstar International-Stock Fund Manager of
the Year award for 2014, this fund lost more than 11%
in 2015 and lagged 98% of its peers. The fund’s
meaningful emerging-markets stake relative to its cate-
gory contributed to its underperformance in 2015,
as did some particularly weak large holdings, including
Petrobras PBR.A (down 55% in 2015), Standard
Chartered STAN (down 34% ), Hewlett-Packard HPQ
(down 31.5%), Royal Dutch Shell RDS.A (down
26%), and Tyco TYC (down 25.5%). Now closed, the
fund has a strong long-term track record, as well
as a low expense ratio and relatively light trading costs.
It also has higher-than-average volatility.
Loomis Sayles Bond Retail LSBRX
This fund trailed 93% of its multisector-bond peers in
2015, shedding 7%. Its underperformance was
the result of a meaningful stake in non-U.S.-dollar-
denominated debt as the U.S. dollar strengthened,
as well as out-of-benchmark allocations in high-yield
industrials and convertibles. With a contrarian
approach and a bargain-hunting, corporate-heavy
strategy, this fund can require patience and can
deliver a bumpy ride. However, it has an experienced,
well-resourced team and has produced a topnotch
long-term record, making it a strong choice in
its category. K
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Ten Worst-Performing Funds
Fund Name YTD Cat Rank %
Longleaf Partners 100
Royce Special Equity Mult 99
ASTON/TAMRO Small Cap N 98
Delafield Fund 98
Dodge & Cox International 98
GoodHaven 98
Loomis Sayles Investment 98
RiverPark/Wedgewood Retai 98
Sequoia 98
FPA Capital 97
Ten Best-Performing Funds
Fund Name YTD Cat Rank %
ASTON/Montag & Caldwell B 1
Brown Capital Mgmt Small 1
Clipper 1
Fidelity Overseas 1
Fidelity Small Cap Stock 1
Oppenheimer Global Opport 1
T. Rowe Price Capital App 1
T. Rowe Price Global Tech 1
T. Rowe Price Media & Tel 1
Vanguard Interm-Term Invm 1
T. Rowe Price Blue Chip Growth
Enjoyed a Strong 2015
Leaders & Laggards | Robert Goldsborough