5 / 5 Stars
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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.
Note: Profile written for different share class.
The fund has returned 22.82 percent over the past year, 12.30 percent over the past three years, 7.41 percent over the past five years, and 9.96 percent over the past decade.
|Trailing Returns||Updated 04.30.2013|
|Year to date||13.1%|
|3 Years (Annualized)||12.3%|
|5 Years (Annualized)||7.4%|
|10 Years (Annualized)||10.0%|
Investors can expect a lot of things from Old Mutual Focused. But market-matching performance in any given year is not among them.
As of May 03, 2013, the fund has assets totaling almost $596.66 million invested in 37 different holdings. Its portfolio consists primarily of shares of large companies.
Old Mutual Focused makes big bets on big companies. As of the end of 2010, the fund had positions in just 29 companies, and the average market cap of its portfolio exceeded that of the S&P 500. Last year, the fund struggled to find its footing and finished the year up just shy of 10 percent. Notably, Microsoft, which makes up more than 5 percent of the fund's portfolio, put a damper on the fund's performance. Its management team, however, was undeterred, and increased its stake in the software giant late last year. Lately, management has been looking for opportunities in undervalued financial firms. Financial services names, including State Street and MetLife, comprised 28 percent of the fund's portfolio--the highest that number had been over the trailing three years--as of the end of 2010. Despite its lackluster return in 2010, the fund's outperformance in 2008 and 2009 are still reflected in its short-term numbers. The fund has returned 22.82 percent over the past year and 12.30 percent over the past three years.
Historically, this fund has rarely had a steady return. Since 2002, it has finished every single year either in the top 15 or the bottom 25 percent of Morningstar's large-blend category. This erratic performance flows naturally from the fund's concentrated nature. While the ups and downs may be too much for shorter-term investors to stomach, those who have stuck around for the long haul have reaped the benefits of the fund's strategy. As of the end of the first quarter, the fund's trailing 10-year returns beat those of both the S&P 500 and its Morningstar peer group. The fund has returned 7.41 percent over the past five years and 9.96 percent over the past decade.
Says Morningstar: "Manager Jerome Heppelmann looks for stocks with low valuations, favorable near-term dynamics, and strong long-term growth potential." The fund pursues a concentrated strategy, which tends to push it to the extremes in any given year. The benefit of that strategy is that management only invests in its favorite, highest-conviction picks. The downside is if even one bet goes wrong, investors are sure to feel the pain. Management hedges against the risk inherent in this strategy by focusing largely on blue chips.
Role in Portfolio
Morningstar calls the fund a "core" holding.
Jerome Heppelmann manages the fund.
Touchstone Focused Fund has an expense ratio of 0.95 percent.
Like all stock funds, this one comes with some risks.