MainStay Large Cap Growth Fund

Scorecard
3 / 5 Stars
Lipper
4 4 4 4 4
Zacks Investment Research
2 (Buy)
Standard & Poor's
3 / 5 Stars
TheStreet.com
B (Buy)

#152 in Large Growth

U.S. News evaluated 466 Large Growth 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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Performance

The fund has returned 32.79 percent over the past year, 14.22 percent over the past three years, 22.44 percent over the past five years, and 9.23 percent over the past decade. 

Trailing Returns Updated 02.28.2014
Year to date 2.8%
1 Year 32.8%
3 Years (Annualized) 14.2%
5 Years (Annualized) 22.4%
10 Years (Annualized) 9.2%

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Summary

MainStay Large Cap Growth has made some noteworthy changes to its portfolio. 

As of March 05, 2014, the fund has assets totaling almost $20.46 billion invested in 65 different holdings. Its portfolio consists primarily of shares of large companies.

Recently, this fund has made a number of changes to its holdings. When Google's troubled relationship with China was threatening its share of the country's massive market, management bought shares of the Chinese search company Baidu, which stood to benefit from the friction between the Chinese government and Google. Baidu finished 2010 up 135 percent. Meanwhile, the fund got rid of its positions in Microsoft and Hewlett-Packard during the year that ended in October 2010. Speaking about the latter company in a report to shareholders, management said: "Our sale was based on concerns over rival Apple's market share gains with its iPad, the abrupt departure of Hewlett-Packard's chief executive officer and a rash of recent acquisition activity." It's no coincidence, then, that as of the end of January, Apple was the fund's top holding. Overall, 2010 was a middling year for the fund. The fund has returned 32.79 percent over the past year and 14.22 percent over the past three years.

Over time, this fund has earned a reputation as a steady performer. As of the end of 2010, its trailing 10-year returns beat those of the S&P 500 by an average of 1 percentage point per year. The fund has returned 22.44 percent over the past five years and 9.23 percent over the past decade. 

Investment Strategy

According to the fund's prospectus: "The Subadvisor seeks to invest in companies that have the potential for above-average future earnings growth. ... When purchasing stocks for the Fund, the Subadvisor looks for companies typically having some or all of the following attributes: addressing markets with growth opportunities; favorable market share; identifiable and sustainable competitive advantages; a management team that can perpetuate the firm's competitive advantages; and, attractive, and preferably rising, returns on invested capital."

Role in Portfolio

Morningstar calls this fund a "core" holding.

Management

A team of three managers runs the fund.

Fees

MainStay Large Cap Growth Fund has an expense ratio of 1.02 percent.

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Risk

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

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