5 / 5 Stars
5 4 5 4 4
Zacks Investment Research
Standard & Poor's
5 / 5 Stars
#9 in Large Value
U.S. News evaluated 326 Large Value 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 26.55 percent over the past year, 15.68 percent over the past three years, 23.90 percent over the past five years, and 8.55 percent over the past decade.
|Trailing Returns||Updated 02.28.2014|
|Year to date||0.4%|
|3 Years (Annualized)||15.7%|
|5 Years (Annualized)||23.9%|
|10 Years (Annualized)||8.6%|
This fund stands out from others in that it uses quantitative analysis to pick stocks. That means management doesn't use fundamental analysis or do things like meet with company management. Bridgeway founder John Montgomery says the quant models determine the best buy and sell opportunities. "What we do is we take many years of historical data ... and calibrate models over the long term so that would be taking a look at history and a particular style," Montgomery says. His team uses historical data and models to size up value stocks. Management often invests in stocks in the Russell 1000 Value index. Management won't invest more than 30 percent of the fund's assets in a single sector, and won't underweight or overweight the portfolio by more than 10 percent in any sector compared with its benchmark. "Half of our job is to beat the market over the long haul, and half of it is to manage that risk," he says. Since its inception in 2003, the fund has returned almost 4 percent annualized. The fund comes with 0.84 percent annual fees.
The investment seeks to provide long-term total return on capital, primarily through capital appreciation and some income. The fund invests at least 80% of its net assets (plus borrowings for investment purposes) in stocks from among those in the large-cap category at the time of purchase. Its sub-advisor selects stocks within the large-cap value category for the fund using a proprietary statistically driven approach. The fund may invest cash balances in other investment companies including money market funds, and may purchase and sell futures contracts to gain market exposure on cash balances or reduce market exposure in anticipation of liquidity needs.
Fees are Low compared to funds in the same category.
American Beacon Bridgeway Large Cap Value Fund has an expense ratio of 0.84 percent.
Risk is Average compared to funds in the same category according to Morningstar.