Best of the Best
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The concept of using a best of the best investment philosophy when putting mutual fund portfolios together came up on another thread. How about sharing some of our favorite Best of the Best mutual funds here. We can open it up to money managers too.
Some ground rules:
1. Name any fund(s) or money managers that you belive exemplify the Best of the Best concept.
2. the fund/manager does not have to be the top performer in it's class.
3. List the reason(s) you like the fund/manager and why it should be included on the best of the best list as well as in clients porfolios.
4. No negative comments about any picks. No one here can predict the future, so no poo pooing anyones ideas.
5. The purpose of this thread is to exchange ideas, let's keep the thread on track.
1. LC Growth- Growth Fund of America and Janus 40 for more aggressive investors
2. LC Value- MFS Value
3. LC Blend- Davis NY Venture
4. MC- Calamos Growth
5. SC- Columbia Acorn and Acorn USA
5. Intern. Fidelity Advisor Diverisifed INternational, paired with MFS International New Discovery
6. Tactical- Calamos Growth and Income and Blackrock Health Sciences
That should get the conversational juices flowing.
Ok, I'll go first.
Columbia Acorn Fund: LACAX
Also available in B and c shares
50k minimum intial investment
Small Growth
I like this fund because of it's excellent management. The fund was managed by Ralph Wanger since it's inception in 1970 thru 2003. Even though Ralph retired in 2003, he remains an advisor to the fund. Current lead manager Charles McQuaid has been with the fund for 26 years and co manager since 1995. He owns the track record , which is excellent. McQuaid employs a proven investment process, which is to by small growth companies down stream from high tech. That is, companies that aren't high tech but benefit from the newest technology. If it ain't broke don't fix it. Fund is up about 9% YTD with excellent numbers across the board. The Acorn fund management team exemplifies the people process end of the professional money mangement equation. This fund is a must have for most growth portfolios.
[quote=blarmston]
1. LC Growth- Growth Fund of America and Janus 40 for more aggressive investors
2. LC Value- MFS Value
3. LC Blend- Davis NY Venture
4. MC- Calamos Growth
5. SC- Columbia Acorn and Acorn USA
5. Intern. Fidelity Advisor Diverisifed INternational, paired with MFS International New Discovery
6. Tactical- Calamos Growth and Income and Blackrock Health Sciences
That should get the conversational juices flowing.
[/quote]
Man, you're fast! Thanks for the great post.
Dimensional Funds all of them except fixed income.
1.Employee owned.
2.Strategies outperform their benchmarks after fees, decade after decade not just for a year or two.
3.Leading Financial Economists on the Board. Several are Nobel Prize winners William Sharpe,Harry Markowitz,Eugene F. Fama,Kennith R. French,Robert Merton, and almost all are Professors at either Stanford, Dartmouth,Harvard,University of Chicago,Yale. If you have your MBA you studied there text books!
4. There clients are the biggest corporations in the world and several States retirement pension plans, To many non U.S. country's for clients to list. This is where the majority of the U.S Corporations keep there pension money. Once a client they never leave!
It would not surprise me if the U.S. government were to invest the publics SS# in the markets that they would use DFA.
AEGFX, DODFX, GFAFX, HACAX, BERWX, OBEGX, HABDX, LSBRX, MVALX, MUHLX, TAVFX, MSUSX & VGHCX.
Pretty much covers the classes and even throws in a couple of sectors. For the most part, these are proven, consistent performers and are all open. They are not all style-pure, but the bottom line is performance, baby!!!
I also like the Columbia Acorn fund, but the doggone minimum is a bit rich for many of my clients, considering it would geerally be one of 10-12 funds in an allocation...
The Bruce Fund and Mairs and Power Growth would be good if I could get them in my program
How about Hartford Capital Appreciation (ITHAX)? I know the expenses are a little bit high, but its about net performance, right? 19% average return over the last 9 years ain’t too shabby.
[quote=indytwo]Hartford Capital Appreciation is closed![/quote]
Not true! $1000 minimum buy. Check with Hartford if you don't believe me.
What do you all use for the small cap space… Lets say on the blend side… I use the Acorn funds but am looking to use other options for smaller accounts…
Acorn - agood choice. Check out Jennison - Dryden also.
Love cap. income builder for safety - great story....awesome 3 -5 -10 yr. track only one down year in 10 (-2.8% in 98') If you want to "sell" a fund, EZ story... client gets good average return & I sleep at night. Also Nat'l resources (Jenn Dry, ML) MFS Utility, many international & Global plays....you know....for yield.
You guys should check out Blackrock’s Health Sciences fund- good performance, global reach, may be a great alpha play for the next decade…
Blarm,
I have exchanged Blackrock's Aurora (not the same manager anymore - no longer comfy with this once phenomenal fund) for the very Health sci. or natty resource you speak of, where it's a good fit.
SHSCX- BlackRock Health Sciences Class C.
MOney- I guess we can throw them a bone on this one eh?? This is a tactical ploy we have been using to generate alpha and take advantage of deomographic and valuation plays. We only use this fund for a small percentage of clients accounts ( 10% or less) to generate some extra pop.
I like the J.P. Morgan Mid Cap Value (JAMCX). It's closed now though, unless it's in a fee based account or mutual fund wrap.
Also, Van Kampen Comstock is another one of my favorites along with Fidelity Diversified International and the Morgan Stanley Equally Weighted S&P500 (VADAX)
Anyone use Highland Floating Rate Preferred? I have done a bit of it.Another big holding of mine has been IVY Nat Resources
One alternative to Acorn is Oppenheimers Small & Midcap Value fund
QVSCX
Not as sweet a story as Acorn, but the 3 & 5 year handily outperforms Acorn (not to mention the indexes).
Stok
balanced funds/equity income funds (van kampen equity income fund and capital income builder of american
international templeton growth