3 / 5 Stars
4 4 4 4 2
Zacks Investment Research
Standard & Poor's
3 / 5 Stars
#84 in Mid-Cap Growth
U.S. News evaluated 221 Mid-Cap 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 22.05 percent over the past year, 11.96 percent over the past three years, 25.51 percent over the past five years, and 9.96 percent over the past decade.
|Trailing Returns||Updated 03.31.2014|
|Year to date||-4.4%|
|3 Years (Annualized)||12.0%|
|5 Years (Annualized)||25.5%|
|10 Years (Annualized)||10.0%|
Delaware Smid Cap Growth has been on a tremendous run.
As of April 22, 2014, the fund has assets totaling almost $1.33 billion invested in 29 different holdings. Its portfolio consists of shares of small and mid-sized companies.
As its name implies, this fund invests in a mix of small and midsized companies. Lately, it's been leaving the competition in the dust. Last year, the fund returned a whopping 35 percent. That's 20 percentage points better than the broader market. Despite this year's broad mid-year market weakness, this fund has continued to put together impressive numbers. As of June 24, it had returned nearly 14 percent year-to-date. That was good enough to land it in the top percentile of Morningstar's mid-cap growth category. The fund's portfolio is quite concentrated. Weight Watchers International, which as of the end of the first quarter represented upwards of 6 percent of its portfolio, has been a huge contributor to performance this year. The fund has returned 22.05 percent over the past year and 11.96 percent over the past three years.
This fund's recent performance represents a dramatic turnaround. Between 2001 and 2009, the fund didn't finish a single year in the top quarter of its Morningstar category. The catalyst looks to be a change in management. Last year, Christopher Bonavico and Kenneth Broad took over the fund. Since then, the improvement has been quite pronounced. The new managers have made a number of changes to the portfolio, as evidenced by the fund's (temporarily) high turnover ratio. The fund has returned 25.51 percent over the past five years and 9.96 percent over the past decade.
According to the fund's prospectus: "Using a bottom-up approach, we seek to select securities of companies that we believe have attractive end market potential, dominant business models, and strong free cash flow generation that are attractively priced compared to intrinsic value of the securities. We also consider a company's operational efficiencies, management's plans for capital allocation, and the company's shareholder orientation. All of these factors give us insight into the outlook for a company, helping us identify companies poised for sustainable free cash flow growth. We believe that sustainable free cash flow growth, if it occurs, may result in price appreciation for the company's stock."
Role in Portfolio
Morningstar calls this fund a "supporting player."
Christopher Bonavico and Kenneth Broad manage the fund.
Delaware Smid Cap Growth Fund has an expense ratio of 1.19 percent.
Like all stock funds, this one comes with some risks.