MassMutual Select Focused Value Fund

Scorecard
4 / 5 Stars
Lipper
5 5 4 4 1
Zacks Investment Research
1 (Strong Buy)
Standard & Poor's
5 / 5 Stars
TheStreet.com
A+ (Buy)

U.S. News evaluated 487 Large Blend Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.

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Note: Profile written for different share class.

Performance

The fund has returned 27.32 percent over the past year, 15.85 percent over the past three years, 30.78 percent over the past five years, and 9.48 percent over the past decade.

Trailing Returns Updated 02.28.2014
Year to date -1.5%
1 Year 27.3%
3 Years (Annualized) 15.9%
5 Years (Annualized) 30.8%
10 Years (Annualized) 9.5%

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Summary

MassMutual Select Focused Value lives up to its reputation as one the most concentrated, high-octane funds in its peer group. 

As of March 05, 2014, the fund has assets totaling almost $873.96 million invested in 23 different holdings. Its portfolio consists primarily of shares of large companies.

After taking a huge hit in 2008, this fund has come roaring back. In 2009, the fund rocketed to a 62 percent return. That beat the average for Morningstar's large-blend category by a whopping 34 percentage points. The fund followed up on that with an impressive 21 percent return during last year's choppy market cycle. This pattern--underperformance followed by blockbuster years--isn't unusual for this fund, whose concentrated portfolio will often push it to the extremes. Notably, as of the end of February, the fund owned shares in just 22 companies. Names like Intel and Carnival Corporation have dominant positions in the fund's portfolio. Meanwhile, management recently initiated positions in Visa and Wells Fargo. When the fund's top companies have good years, the fund races to the front of the pack. But if even one struggles, investors are sure to feel the pain in an acute fashion. The fund has returned 27.32 percent over the past year and 15.85 percent over the past three years. 

Since the fund's 2000 launch, it has finished the top 5 percent of Morningstar's large-blend category in four separate years. At the same time, though, it has also landed in the bottom 15 percent three times. This volatility can hurt quite a bit in bad years, but the fund's long-term numbers are hard to argue with. As of the end of the first quarter, the fund's trailing 10-year returns beat those of the S&P 500 by nearly 7 percentage points per year. The fund has returned 30.78 percent over the past five years and 9.48 percent over the past decade. 

Investment Strategy

According to the fund's prospectus: "In selecting investments for the Fund, [management] utilizes a fundamental, bottom-up investment strategy, focusing on companies with market capitalizations over $1 billion that it believes have significant profit potential. [Management] generally sells a stock when it believes the stock has achieved 90-100% of its fair value or [if the company's] management quality has deteriorated."

Role in Portfolio

This fund could lend support to a well-balanced portfolio.

Management

Robert Levy and Michael Mangan manage the fund. 

Fees

MassMutual Select Focused Value Fund has an expense ratio of 0.68 percent. 

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Risk

Like all stock funds, this one comes with some risks.

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