3 / 5 Stars
3 3 3 4 4
Zacks Investment Research
1 (Strong Buy)
Standard & Poor's
3 / 5 Stars
#21 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 23.65 percent over the past year, 13.63 percent over the past three years, 18.75 percent over the past five years, and 9.11 percent over the past decade.
|Trailing Returns||Updated 06.30.2014|
|Year to date||8.1%|
|3 Years (Annualized)||13.6%|
|5 Years (Annualized)||18.8%|
|10 Years (Annualized)||9.1%|
Despite what its name suggests, there have been plenty of years in which FPA Perennial has failed to blossom.
As of July 03, 2014, the fund has assets totaling almost $312.97 million invested in 34 different holdings. Its portfolio consists primarily of shares of small and mid-sized companies.
For this fund, 2010 was a middling year. It returned 23 percent, which was quite solid on an absolute basis, but on a relative basis, it wasn't good enough to land it in the top half of Morningstar's mid-cap growth category. Still, there were a number of positives last year. In particular, car-related companies drove the fund's performance, with names like CarMax, Wabco Holdings Incorporated, and O'Reilly Automotive all adding value. Overall, management has been betting lately on the health of the U.S. consumer. The fund is overweight in both the consumer goods and the consumer service sectors, which reflects management's hope that Americans will start spending more as the economy rebounds. The fund has returned 23.65 percent over the past year and 13.63 percent over the past three years.
Over time, this fund has come to be defined by a concentrated, low-turnover strategy. As of the end of 2010, for instance, the fund owned just 28 names, and its turnover ratio sat at a rock-bottom 3 percent. These statistics speak to two attributes: management's strong conviction in its picks and a pronounced buy-and-hold strategy. Another distinctive feature is this fund's reliance on small-cap stocks, which represent more than 30 percent of its portfolio. Up until 2004, Mornignstar categorized the fund as a small-blend product, and its exposure to small companies has, over the long haul, helped boost its returns. Notably, as of the end of 2010, despite a number of off years, the fund's trailing 10-year returns beat those of the S&P 500 by upwards of 8 percentage points per year. The fund has returned 18.75 percent over the past five years and 9.11 percent over the past decade.
Management runs a concentrated portfolio, which means that it invests only in its favorite, highest-conviction picks. Another distinguishing feature is the fund's buy-and-hold philosophy, which is reflected in its rock-bottom 3 percent turnover ratio. Over time, the fund has morphed from a small blend into a mid-cap growth product. Despite the new classification, it still has hefty exposure to small companies. Lately, management has been enthusiastic about the consumer goods and consumer services sectors.
Role in Portfolio
Morningstar calls the fund a "supporting player."
Eric Ende and Steven Geist manage the fund.
FPA Perennial Fund has an expense ratio of 0.96 percent.
Like all stock funds, this one comes with some risks.