3 / 5 Stars
2 2 5 5 3
Zacks Investment Research
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U.S. News evaluated 110 Long/Short Equity 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 4.25 percent over the past year, 1.06 percent over the past three years, 7.55 percent over the past five years, and 5.07 percent over the past decade.
|Trailing Returns||Updated 03.31.2014|
|Year to date||1.2%|
|3 Years (Annualized)||1.1%|
|5 Years (Annualized)||7.5%|
|10 Years (Annualized)||5.1%|
Forester Value knows how to play defense.
As of April 22, 2014, the fund has assets totaling almost $135.26 million invested in 35 different holdings. Its portfolio consists primarily of shares of large-cap companies.
This fund has historically protected against the downside. In 2008, Forester was the only domestic stock fund to finish the year with a positive return, according to Morningstar. Manager Tom Forester focuses on companies with low price-to-earnings ratios because he believes they are the best performers over time. For now, Forester says he's somewhat concerned with the strength of the economic recovery. As of the end of December, about 20 percent of the fund's assets were in cash. "I'd say it's a yellow light," he says. "We're a little cautious right now." Forester currently favors healthcare companies and consumer staples. He thinks many healthcare companies are undervalued, and he believes consumer staples like Kraft is a safe bet in a slow-growing economy. So far in 2011, the fund's defensive posture has slowed its returns somewhat. The fund has returned 4.25 percent over the past year and 1.06 percent over the past three years.
Historically, this fund has rarely moved in unison with other large-cap value funds. Since 2000, for instance, it has landed in the top percentile of Morningstar's large-value category in three separate years. But it's also ended up in the bottom percentile twice. One consequence of the fund's defensive nature is that it will usually fall behind during strong markets. That's what happened in 2003, when the fund lagged the S&P 500 by more than 28 percentage points, and in 2010 when the fund finished in the bottom of its category. The fund has returned 7.55 percent over the past five years and 5.07 percent over the past decade.
According to the fund's prospectus: "The Forester Value Fund invests in the stocks of large U.S. companies that it believes are undervalued and have great appreciation potential. It may also take defensive positions when the manager believes that the overall stock market is highly valued or that market conditions warrant it. The Fund generally purchases a stock only at a price [that management] deems significantly below the intrinsic value of the company -[management's] estimate of the amount a buyer would pay to own the entire company."
Role in Portfolio
Morningstar calls this fund a "supporting player."
Tom Forester manages the fund.
Forester Value Fund has an expense ratio of 1.25 percent.
This fund tends to hold up significantly better than the rest of its peers during weak markets. But it will usually lag behind during rallies.