3 / 5 Stars
4 4 4 5 2
Zacks Investment Research
Standard & Poor's
4 / 5 Stars
#60 in Large Value
U.S. News evaluated 313 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 33.82 percent over the past year, 16.33 percent over the past three years, 14.68 percent over the past five years, and 8.61 percent over the past decade.
|Trailing Returns||Updated 10.31.2013|
|Year to date||28.5%|
|3 Years (Annualized)||16.3%|
|5 Years (Annualized)||14.7%|
|10 Years (Annualized)||8.6%|
Homestead Value has been on a "healthy" run as of late.
As of November 05, 2013, the fund has assets totaling almost $770.65 million invested in 46 different holdings. Its portfolio consists primarily of shares of large- and mid-cap companies.
Lately, this fund has been making a big bet on the healthcare sector. As of the end of June, it had 22 percent of its equity holdings in healthcare companies, twice the average of the S&P 500. For a value fund, healthcare isn't an unnatural play. As uncertainty over healthcare reform dragged on earlier this year, the sector took a beating. The way many value managers saw it, that represented a huge opportunity. Still, this fund is no Johnny-come-lately as far as healthcare stocks go. Over the past three years, healthcare companies have always represented at least 18 percent of its stock holdings. So far this year, healthcare names such as Bristol-Myers Squibb and Hospira have been major contributors to the fund's performance. Over the past few years, the fund has rarely jumped to the front of the pack, but it's still been a steady performer. The fund has returned 33.82 percent over the past year and 16.33 percent over the past three years.
Over time, management has exhibited a strong buy-and-hold philosophy. Says Morningstar: "That's what one should expect from a strategy that looks for good companies temporarily out of favor. Once a manager employing such a strategy snags a good business at a decent price, hanging on will help the fund achieve the returns stemming from the market coming to its senses." As of the end of September, the fund's trailing 10-year returns landed it in the top 7 percent of Morningstar's large value category. The fund has returned 14.68 percent over the past five years and 8.61 percent over the past decade.
According to the fund's prospectus: "The Fund invests in stocks of established companies selling below what [management] believes to be fundamental value. These are typically sizable business franchises with market capitalizations of $2 billion or greater ... To determine whether a stock is undervalued, [management] considers, among other factors, earnings valuations, debt ratios and any competitive advantages a company may have. Stock selection is made with the belief that businesses have an underlying value that is not always reflected by share price, especially over the short term. [Management] selects stocks that may benefit over time from a more reasonable market assessment of fundamental value."
Role in Portfolio
Morningstar calls this fund a "core" holding.
Peter Morris, Stuart Teach, and Mark Ashton manage the fund.
Homestead Funds Value Fund has an expense ratio of 0.68 percent.
Like all stock funds, this one comes with some risks.