Shelton Capital Management Core Value Fund

Scorecard
4 / 5 Stars
Lipper
3 4 5 5 5
Zacks Investment Research
4 (Sell)
Standard & Poor's
3 / 5 Stars
TheStreet.com
C+ (Hold)

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.

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Note: Profile written for different share class.

Performance

The fund has returned 21.01 percent over the past year, 11.69 percent over the past three years, 22.60 percent over the past five years, and 7.27 percent over the past decade. 

Trailing Returns Updated 02.28.2014
Year to date -0.6%
1 Year 21.0%
3 Years (Annualized) 11.7%
5 Years (Annualized) 22.6%
10 Years (Annualized) 7.3%

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Summary

California Equity Investment Income is a stock picker's fund.

As of March 05, 2014, the fund has assets totaling almost $193.27 million invested in 98 different holdings. Its portfolio consists primarily of shares of blue-chip companies.

Lately, management has stayed away from sector bets. Notably, the fund's sector weightings are within a few percentage points of those of the S&P 500. Since the fund is sector neutral, any outperformance stems from management's stock-picking ability. In selecting stocks, management looks to isolate attractively priced, dividend-paying companies that will reward investors with both current income and capital appreciation. Based on the fund's recent performance, it appears that management has been delivering the goods. In 2009, for instance, the fund gained 26 percent, which is a respectable figure for a value fund. Unlike large-cap growth funds, which far outpaced the S&P 500 during the rebound, large-cap value funds stayed relatively in step with the broader market. The fund followed up on that performance with a 19 percent return last year. That was good enough to beat the broader market and the average for its Morningstar category. The fund has returned 21.01 percent over the past year and 11.69 percent over the past three years. 

Over time, this fund has rewarded patient investors. Its conservative approach, combined with its preference for dividend-paying stocks, has paid off over the long haul. Still, that's not to say that the fund has been without missteps. For instance, since 2000 the fund has finished six separate years in the bottom half of Morningstar's large-value category. The fund has returned 22.60 percent over the past five years and 7.27 percent over the past decade. 

Investment Strategy

Management looks for dividend-paying stocks. True to its value leanings, management also looks to identify companies that are trading at a discount to what they are worth. Overall, the fund takes a relatively conservative approach to stock selection, and this can hold it back at times. The fund currently maintains sector weightings that are very similar to those of the S&P 500, meaning that management looks to add value mostly through stock selection. 

Role in Portfolio

This fund could lend support to a well-balanced portfolio.

Management

Stephen Rogers has managed the fund since 2003. 

Fees

Shelton Capital Management Core Value Fund has an expense ratio of 1.34 percent. 

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Risk

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

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