Weitz Short-Intermediate Income Fund

Scorecard
4 / 5 Stars
Lipper
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Zacks Investment Research
3 (Hold)
Standard & Poor's
2 / 5 Stars
TheStreet.com
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U.S. News evaluated 122 Short-Term Bond 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 1.01 percent over the past year, 2.25 percent over the past three years, 4.23 percent over the past five years, and 3.62 percent over the past decade. 

Trailing Returns Updated 02.28.2014
Year to date 0.7%
1 Year 1.0%
3 Years (Annualized) 2.3%
5 Years (Annualized) 4.2%
10 Years (Annualized) 3.6%

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Summary

Weitz Short-Intermediate Term Income has a relatively simple goal: to make money in any market environment.

As of March 05, 2014, the fund has assets totaling almost $1.54 billion invested in 236 different holdings. Its portfolio consists of a mix of fixed-income holdings, including mortgage-backed securities and corporate bonds.

Lately, this fund has cemented its reputation as an all-weather investment. In 2008, for instance, the fund's return topped the average of Morningstar's short-term bond category by 6.5 percentage points. In the fixed-income universe, that's a staggering difference. The fund followed up on that feat by returning upward of 10 percent in 2009. Meanwhile, the fund finished 2010 in the top third of its Morningstar category. Relative to its peers, the fund has been overweight in both corporate bonds and mortgage-backed securities. Within mortgage-backed securities, the fund owns a number of tame bonds, including many that are tied to Freddie Mac or Fannie Mae, the twin housing giants that were effectively nationalized during the recession. The fund has also been relatively tame in terms of its credit quality. As of the end of 2010, roughly 70 percent of its bond investments were in securities rated A or higher. Going forward, this fund is well-positioned for rising interest rates. While interest rates are still at historic lows, it's only a matter of time before they start creeping back up. When that happens, funds with shorter durations will feel less pain since they're not as sensitive to rate changes. That's good news for this fund, which keeps a lid on its average duration. The fund has returned 1.01 percent over the past year and 2.25 percent over the past three years. 

Over the years, the fund has been nothing if not a steady performer. As of the end of the first quarter, its trailing five- and 10-year returns both landed it in the top 10 percent of its Morningstar category. The fund has returned 4.23 percent over the past five years and 3.62 percent over the past decade. 

Investment Strategy

According to the fund's prospectus: "Under normal market conditions, the Fund will invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in fixed income securities such as U.S. government and agency securities, corporate debt securities and mortgage-backed securities. We select fixed income securities whose yield is sufficiently attractive in view of the risks of ownership. In deciding whether the Fund should invest in particular fixed income securities, we consider a number of factors such as the price, coupon and yield-to-maturity, as well as the credit quality of the issuer."

Role in Portfolio

Morningstar calls this fund a "core" holding.

Management

Thomas Carney has managed the fund since 1996. 

Fees

Weitz Short-Intermediate Income Fund has an expense ratio of 0.82 percent. 

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Risk

The fund has a short average duration, so it's well-positioned for interest rate hikes.

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