Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Four Loser Funds Worth Sticking With for the Turnaround


You don't make a profit until you sell, as the old saw goes, but the opposite is also true. These four funds, while in the red, are worth holding on to.


It isn't any fun opening a fresh issue only to see one of your funds with a bunch of red numbers after its name in the data tables.

I took a look through the August issue for funds with red numbers but good reasons to hold on. I can't say all of those with red numbers are keepers. I'm not a big fan of CGM Focus (MUTF:CGMFX) or Brandywine (MUTF:BRWIX). But others offer more hope for a rebound. Here, then, are four of the better ones.

Royce Value (MUTF:RYVFX)
Whitney George and Jay Kaplan have been way off the mark with their sector selection, and the fund has dismal year-to-date and 12-month losses to show for it.

They have big overweightings in energy and basic materials-the year's worst-performing sectors. Moreover, they are underweight in health care, which has been the best place to be.

They aren't attempting to make sector calls, exactly, but George does have a bullish view on materials and energy because of demand from China and other emerging markets. So they have been a consistent feature of the fund since its beginning. I worry less about sector issues at funds that have long-term favorites, provided they've still made money over the long haul.

And this fund has. It is in the top 5% of its peer group, with a robust 13.3% annualized return during the past ten years.

< Previous
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos