These are testing times for fund managers. From a market high on July 19, Standard & Poor's 500-stock index had slumped 7.3% (including dividends) by the close on August 3. Volatility spiked. The small-company Russell 2000 index surrendered nearly 11% during the same time span. How fared the stock funds in the Kiplinger 25?
The results were mixed. It's little surprise that Merger (MERFX), which doesn't correlate closely to stock market performance, held its value best, shedding less than 2% during the turbulent 15-day timeframe. Next best was Ken Heebner's CGM Focus (CGMFX), which fell less than 3% and was up a staggering 29% year to date. Heebner dumped his investment-bank stocks before the group started to roll over in late spring and, if his March 31 portfolio is anything to go by, is benefiting from a large position in foreign and energy and industrial-material stocks.
Bill Miller's Legg Mason Opportunity Primary (LMOPX) was enjoying an outstanding year until the market plunge clocked his fund more than 11%. But at least Miller's fund has still returned 5% for the year, three percentage points ahead of the S&P index.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Muhlenkamp (MUHLX) and Bill Nygren's Oakmark Select (OAKLX), both value-oriented funds, fell more than 10% during the commotion and have lost money for investors this year. Ill-timed holdings in homebuilders and thrifts -- both have large investments in Washington Mutual -- tarred both funds. Ron Muhlenkamp must wonder what he was thinking when he made Countrywide Financial, a leading mortgage lender, a top-five position in his portfolio. Countrywide has plummeted 41% this year and homebuilder Toll Brothers, another large Muhlenkamp position, lost a third of its value.
T. Rowe Price Growth Stock (PRGFX) and Vanguard Primecap Core (VPCCX) held up relatively well and have handily beaten the S&P index this year: large-company growth appears to be besting value in general this year. Growth Stock has shown some adroit stock selection this year, with large positions in Schlumberger, CVS Caremark and Accenture, all big gainers.
In the small-company camp, Champlain Small Company Advisor (CIPSX) continues to shine. It fell 5%, less than half the Russell 2000 decline, and was up 7% for the year, beating the index by an impressive 11 percentage points.
(Visit the Kiplinger 25 Center to learn more about our favorite funds.)
-
Stock Market Today: Stocks End Higher in Whipsaw SessionThe main indexes were volatile Thursday with Nvidia earnings in focus.
-
Trump Picks Dr. Oz as Head of Medicare and MedicaidPresident-elect Donald Trump picked Dr. Mehmet Oz to lead the Centers for Medicare and Medicaid Services. Here's what to know about the former TV host.
-
The Kiplinger 25: Our Favorite No-Load Mutual FundsThe Kiplinger 25 The Kiplinger 25 is a list of our top no-load mutual funds that have proven capable of weathering any storm.
-
The 5 Best Actively Managed Fidelity Funds to Buy Nowmutual funds In a stock picker's market, it's sometimes best to leave the driving to the pros. These Fidelity funds provide investors solid active management at low costs.
-
The 12 Best Bear Market ETFs to Buy NowETFs Investors who are fearful about the more uncertainty in the new year can find plenty of protection among these bear market ETFs.
-
Don't Give Up on the Eurozonemutual funds As Europe’s economy (and stock markets) wobble, Janus Henderson European Focus Fund (HFETX) keeps its footing with a focus on large Europe-based multinationals.
-
Best Bond Funds to BuyInvesting for Income The best bond funds provide investors with income and stability – and are worthy additions to any well-balanced portfolio.
-
Vanguard Global ESG Select Stock Profits from ESG Leadersmutual funds Vanguard Global ESG Select Stock (VEIGX) favors firms with high standards for their businesses.
-
Kip ETF 20: What's In, What's Out and WhyKip ETF 20 The broad market has taken a major hit so far in 2022, sparking some tactical changes to Kiplinger's lineup of the best low-cost ETFs.
-
ETFs Are Now Mainstream. Here's Why They're So Appealing.Investing for Income ETFs offer investors broad diversification to their portfolios and at low costs to boot.
