5 / 5 Stars
5 5 5 4 4
Zacks Investment Research
5 (Strong Sell)
Standard & Poor's
5 / 5 Stars
#33 in Large Blend
U.S. News evaluated 498 Large Blend 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 20.44 percent over the past year, 14.86 percent over the past three years, 9.30 percent over the past five years, and 9.97 percent over the past decade.
|Trailing Returns||Updated 04.30.2013|
|Year to date||12.3%|
|3 Years (Annualized)||14.9%|
|5 Years (Annualized)||9.3%|
|10 Years (Annualized)||10.0%|
BBH Core Select is much steadier than its compact nature would suggest.
As of May 03, 2013, the fund has assets totaling almost $5.26 billion invested in 34 different holdings. Its portfolio consists primarily of shares of large companies.
This fund’s portfolio is quite compact. As of the end of January, management owned shares of only 30 companies. But unlike many of its concentrated peers, which are prone to instability, this fund has been remarkably sturdy. That’s because what the fund lacks in diversification, it makes up for in cautious stock selection. Management scours the market for companies that have tremendous brand appeal and devoutly loyal customers. As a result, the fund is heavily invested in niche companies with long-term advantages. An additional criterion is that the fund will only buy a company if it is trading at a discount to what management thinks it’s worth. Taken together, this philosophy has led the fund to invest in companies such as Wal-Mart, Nestle, and Costco Wholesale. Management’s cautious approach has served the fund well, and thanks in part to strong performance by holdings such as Comcast and Liberty Global, the fund put together some respectable, if not earth-shattering, results in 2010. The fund has returned 20.44 percent over the past year and 14.86 percent over the past three years.
Over time, management has gravitated strongly toward a buy-and-hold strategy, which is reflected in the fund’s low (19 percent) turnover ratio. “We believe that having a long-term investment horizon enables better investment decision making since it requires a consistent focus on key value drivers rather than the vagaries of near term crosswinds in industries and markets,” management said in commentary for the fourth quarter of 2010. Because of the fund’s concentrated nature, it hasn’t always moved in lockstep with the broader market. But over time, it has beaten both the S&P 500 and the average for Morningstar’s large-growth category. The fund has returned 9.30 percent over the past five years and 9.97 percent over the past decade.
The fund will only buy a stock if management thinks it is trading at a discount to what it is worth. In addition, management looks for companies with niche markets, loyal customers, strong brand appeal, and significant long-term advantages. A long-term, buy-and-hold strategy is central to the fund’s approach.
Role in Portfolio
Morningstar calls this fund a “core” holding.
A team of three managers runs the fund.
BBH Core Select Fund has an expense ratio of 1.00 percent.
Like all stock funds, this one comes with some risks.