5 / 5 Stars
5 5 2 3 1
Zacks Investment Research
1 (Strong Buy)
Standard & Poor's
5 / 5 Stars
U.S. News evaluated 206 Diversified Emerging Mkts Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
The fund has returned 3.97 percent over the past year, 2.53 percent over the past three years, 18.75 percent over the past five years, and 13.18 percent over the past decade.
|Trailing Returns||Updated 03.31.2014|
|Year to date||-0.5%|
|3 Years (Annualized)||2.5%|
|5 Years (Annualized)||18.7%|
|10 Years (Annualized)||13.2%|
The Driehaus Emerging Markets Growth fund is a an aggressive, growth-oriented stock fund that dives head-first into the chronically volatile emerging markets pool without qualms, and sticks to a fast-trading, price-sensitive approach.
As of April 22, 2014, the fund has assets totaling almost $1.75 billion invested in 110 different holdings. Its portfolio consists of large- and medium-cap foreign stocks.
Although the fund has a reputation for shuffling its holdings frequently, the portfolio has fluctuated even more during the past few years. According to Morningstar, of the nearly 90 companies held in the fund’s portfolio as of January 2010, only nine were there the year before. With a turnover rate well above the category average—275 percent in 2009 and 313 percent in 2008—investors shouldn’t get too comfortable with any name in the portfolio. The fund didn’t perform as well as its peers during market rallies in 2009 and 2010, partially due to fund manager Howard Schwab’s hesitation to invest in more volatile sectors that ended up soaring. However, it performed well in 2010, an achievement Schwab attributed to strong performance from individual stocks in the domestic consumption sector.
Over the long term, the fund has consistently outperformed its benchmark and category, returning 18.75 percent over the past five years and 13.18 percent over the past decade.
Managers shuffle holdings very frequently as stocks go in and out of attractive price ranges. Fund manager Howard Schwab keeps about 70 to 90 stocks in small- to medium-sized companies and looks for companies with very high earnings and revenue growth. Typically, individual positions do not exceed 5 percent of assets. Management uses a quick-trading, growth-oriented strategy and sticks to it, even in less-than-hospitable markets.
Role in Portfolio
Morningstar calls this fund a “specialty” investment.
Howard Schwab has only been at the helm of this fund since 2008, but according to Morningstar, he runs the fund with the same high-turnover, growth style as his predecessors. Schwab also manages the Driehaus Global Growth Fund and the International Small Cap Growth fund. Prior to taking over the two funds, Schwab was an investment analyst for Driehaus. Chad Cleaver joined the fund as assistant portfolio manager in 2008. Prior to working at Driehaus, Cleaver worked for the Board of Governors of the Federal Reserve System.
Driehaus Emerging Markets Growth Fund has an expense ratio of 1.64 percent.
Emerging markets tend to be more volatile than developed markets.