5 / 5 Stars
5 5 2 2 4
Zacks Investment Research
1 (Strong Buy)
Standard & Poor's
3 / 5 Stars
#40 in Large Growth
U.S. News evaluated 463 Large Growth 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 27.65 percent over the past year and 17.02 percent over the past three years.
|Trailing Returns||Updated 10.31.2013|
|Year to date||25.8%|
|3 Years (Annualized)||17.0%|
|5 Years (Annualized)||23.1%|
|10 Years (Annualized)||N/A|
Marsico Flexible Capital takes its name seriously. In its brief history, the flexible nature of its broad investing mandate has been key to its success.
As of November 05, 2013, the fund has assets totaling almost $838.47 million invested in 51 different holdings. Its portfolio consists primarily of shares of domestic and international companies.
Marsico Flexible Capital does its best to defy categorization. While technically a large-cap fund, it also has hefty weightings in mid- and small-cap companies. Despite its characterization as an equity fund, it also owns bonds. And while on the books it's a domestic fund, it maintains substantial positions in foreign countries. In other words, it's a classic "go-anywhere fund." And in the past, it's wielded that power freely. For instance, while the fund, which launched in 2006, now (as of the end of December 2010) has about half of its portfolio tucked away in the United States, previously up to 30 percent has been invested in China. Given the fund's agile nature, it's no surprise that manager Doug Rao does a lot of trading, and the fund's turnover ratio currently sits near 150 percent. By comparison, a fund that replenishes its entire portfolio once a year would have a turnover ratio of 100 percent. While Rao's strategies certainly are atypical, his results speak for themselves. In 2009, for instance, the fund beat the S&P 500 by 25 percentage points. The fund has returned 27.65 percent over the past year and 17.02 percent over the past three years.
The fund can invest in common or preferred stocks of companies of any market capitalization, as well as in bonds and even warrants. Occasionally, Rao will also keep a sizeable chunk of the portfolio in cash. As a result of his opportunistic strategy, Rao generally does a lot of trading. In picking stocks, Rao seeks out companies with long-term advantages. These advantages can come from a company's technological prowess, cost structure, or brand appeal. "What we look for are what we would define as very high-quality companies that have long-term, sustainable moats around their businesses," he says.
Role in Portfolio
This fund could lend support to a well-balanced portfolio.
Doug Rao has managed the fund since 2008.
Marsico Flexible Capital Fund has an expense ratio of 1.43 percent.
Like all stock funds, this one comes with some risks.