3 / 5 Stars
4 3 2 1 3
Zacks Investment Research
1 (Strong Buy)
Standard & Poor's
3 / 5 Stars
#133 in Large Growth
U.S. News evaluated 464 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 35.84 percent over the past year, 15.50 percent over the past three years, 21.28 percent over the past five years, and 8.23 percent over the past decade.
|Trailing Returns||Updated 06.30.2014|
|Year to date||2.9%|
|3 Years (Annualized)||15.5%|
|5 Years (Annualized)||21.3%|
|10 Years (Annualized)||8.2%|
Transamerica Focus's compact portfolio has led to some extreme results.
As of July 03, 2014, the fund has assets totaling almost $1.03 billion invested in 48 different holdings. Its portfolio consists of shares of companies that span the market capitalization spectrum.
This fund is distinctive in a number of ways. Over half of its portfolio is invested in large-cap names, but management also invests heavily in mid-cap, and even small-cap, companies. Morningstar currently classifies it as a large-growth fund, but it's also been labeled a mid-cap growth fund in the past. As of the end of 2010, the fund owned shares of just 30 companies. The fund's concentrated strategy has blown up investors' faces in past years, but 2010 wasn't among them. Last year, the fund returned upwards of 27 percent. That was good enough to land it in the top percentile of Morningstar's large-growth category. Blockbuster performances by Apple and Marriott International helped lead the fund to this outperformance. Lately, the fund has sported a hefty overweight to the consumer services sector, with names like Marriott, Amazon, and Priceline.com occupying prominent spots in its portfolio. The fund has returned 35.84 percent over the past year and 15.50 percent over the past three years.
Largely due to the fund's compact nature, the fund is--for better or worse--prone to large swings. Since 2001, the fund has finished in the top 10 percent of its Morningstar category in four separate years. But it has also finished in the bottom 40 percent three times. Notably, if even one pick goes sour, investors are sure to feel the pain. Still, as of the end of 2010, the fund's trailing 10-year returns beat those of the S&P 500 by an average of more than 2 percentage points per year. The fund has returned 21.28 percent over the past five years and 8.23 percent over the past decade.
According to the fund's prospectus: "[Management] seeks out U.S. companies showing strong potential for shareholder value creation, high barriers to competition, solid free cash flow generating ability, excellent capital allocation discipline and experienced management."
Role in Portfolio
This fund could lend support to a well-balanced portfolio.
A team of three managers runs the fund.
Transamerica Capital Growth Fund has an expense ratio of 1.41 percent.
Like all stock funds, this one comes with some risks.