(MONEY Magazine) – How to choose among 100 funds? We've sorted them into the broad asset-allocation groups you'd use to assemble a portfolio: large-cap, midcap, small-cap and global, plus specialty areas such as technology and real estate funds. We've also indicated whether each domestic fund follows a growth strategy, a value strategy or a blend of the two. You can check out the top-five-holdings column for help distinguishing funds with similar strategies: Fidelity Fund and Mairs & Power Growth are both large-cap blend funds, for example, but the former portfolio leads with market heavyweights Microsoft and General Electric, while the latter is atypically topped off with Wells Fargo and Target. Our comments column pinpoints what makes each fund special. Follow the icons, explained in the footnotes below, to find this year's newcomers, as well as to shop for low-expense bargains and low-risk funds that are less volatile than the market. While it's tough to predict tax efficiency, if a fund is marked with the tax-issues icon, consider sheltering it in an IRA or a 401(k) to maximize return.
Peer-group rank: [A] = Top quartile, [B] = Second quartile, [C] = Third quartile, [D] = Bottom quartile. [E] Low cost (in bottom 15% of its MONEY 100 category). [F] Low risk (in bottom 10% of its style category and less volatile than Standard & Poor's 500-stock index). [G] New to list. [H] Tax issues. Tends to have higher than average taxable distributions; best held in a 401(k) or IRA.
MIN. FUND NAME/ PEER-GROUP RANK/ INVEST./ TELEPHONE/TICKER/STYLE TOTAL RETURN THROUGH MAY 31 LOAD/ NET ASSETS (MIL.) 1 YR. 3 YR. 5 YR. 10 YR. EXPENSES MANAGER NAME(S) TOP FIVE HOLDINGS COMMENTS
ABN AMRO/Chicago Capital Gro. [G] $2,500 800-992-8151/CHTIX/Growth [A] [A] [A] -- None $718 Rick Drake, Bernie Myszkowski -11.8% -1.0% 9.3% -- 1.09% Cardinal Health, Harley-Davidson, Freddie Mac, Sysco, Electronic Data Systems Only about 250 companies pass Drake and Myszkowski's screens for consistent earnings growth and stability. The duo then whittles the group down to about 40 superior companies.
ABN AMRO/Montag & $2,500 Caldwell Growth [F] [A] [B] [B] -- None 2,329 800-814-3402/MCGFX/Growth -10.1 -4.5 6.5 -- 1.06% Ron Canakaris Coca-Cola, Pfizer, Procter & Gamble, Qualcomm, Colgate-Palmolive Canakaris hunts for companies that can grow earnings at a 10%- to 20%-a-year pace--but he's not willing to pay high prices. He buys stocks at what he pegs as a 20% discount to their value.
Buffalo USA Global [G] $2,500 800-492-8332/BUFGX/Blend [A] [A] [A] -- None 71 Tom Laming, Kent Gasaway -9.3 5.6 7.8 -- 1.03% Lear, Johnson & Johnson, McDonald's, Coca-Cola, Sigma-Aldrich Companies that derive at least 40% of their revenue from outside the U.S. make up the holdings here. The fund has taken a hit from tech but comes out strong thanks to names like McDonald's and Coke.
Clipper [F] $5,000 800-776-5033/CFIMX/Value [A] [A] [A] [A] None 4,253 James Gipson, Michael Sandler, 13.3 15.7 16.7 18.1% 1.08% Bruce Veaco, Peter Quinn, Kelly Sueoka Freddie Mac, Tyco International, Philip Morris, Fannie Mae, American Express Gipson and team buy only companies trading at 70% or less of their intrinsic value and are willing to hold cash rather than compromise their standards. Their latest big purchase: Tyco.
Dodge & Cox Stock [E] $2,500 800-621-3979/DODGX/Value [A] [A] [A] [A] None 12,040 Team 1.9 10.5 13.4 16.4 0.54% Bank One, Golden West Financial, Dow Chemical, Union Pacific, Xerox What Dodge & Cox lacks in excitement, it makes up for with excellent returns. The 10 managers stick to a strict value discipline and hold stocks far longer than their average competitor.
Dreyfus Appreciation [F] $2,500 800-373-9387/DGAGX/Blend [A] [A] [A] [A] None 3,356 Fayez Sarofim, team -8.4 -1.4 7.2 12.0 0.90% Pfizer, Johnson & Johnson, Philip Morris, ExxonMobil, Fannie Mae Sarofim and team focus on a relatively small number of brand-name blue chips and hold on--and on. The portfolio tilts toward consumer staples and health care (more than 6% of assets are in Pfizer).
Excelsior Value & Restructuring $500 800-446-1012/UMBIX/Value [C] [A] [A] -- None 2,313 David Williams -9.0 7.5 12.9 -- 1.05% Black & Decker, AmerisourceBergen, Kraft Foods, Centex, Union Pacific Williams typically owns more tech than his value peers, which hasn't helped lately. But over the long term, his knack for picking turnaround plays has kept the fund at the top of its class.
Fidelity [E] $2,500 800-343-3548/FFIDX/Blend [C] [B] [A] [A] None 11,279 John Avery -15.9 -4.6 7.1 12.4 0.51% Microsoft, General Electric, Philip Morris, Citigroup, Pfizer New manager Avery had a good record at Advisor Growth & Income. So far he's picked companies that he believes can grow regardless of whether the economy rebounds.
Fidelity Dividend Growth $2,500 800-343-3548/FDGFX/Blend [A] [A] [A] -- None 15,596 Charles Mangum -10.1 1.3 11.8 -- 0.98% Cardinal Health, Clear Channel, General Electric, Fannie Mae, Bristol-Myers Squibb The fund has suffered from large stakes in sickly health-care names like Pfizer. But Mangum has navigated tough markets before by seeking stocks that grow faster than the S&P but sell for less.
Fidelity Growth & Income [E,F,G] $2,500 800-343-3548/FGRIX/Blend [A] [B] [A] [A] None 32,163 Steven Kaye -9.4 -2.7 6.9 12.7 0.66% Microsoft, General Electric, USA Education, Fannie Mae, Philip Morris Admittedly not flashy, this huge fund has bets on about 200 mostly large-cap stocks. Kaye looks for earnings growth at low prices, which has kept the fund light on tech and heavy on financials.
Gabelli Westwood Equity $1,000 800-422-3554/WESWX/Value [C] [A] [A] [A] None $304 Susan Byrne -11.4% 1.9% 8.5% 14.1% 1.43% Sears, General Motors, Apache, Bank of America, Boeing Byrne shoots for big returns from companies posting positive earnings surprises that haven't been rewarded yet. She holds only about 40 stocks, but her value bent keeps volatility low..
Gateway [F] $1,000 800-354-6339/GATEX/Dom. Hybrid [B] [B] [B] [C] None 1,289 Patrick Rogers -3.9 2.7 6.8 7.5 0.97% General Electric, Microsoft, ExxonMobil, Wal-Mart, Citigroup This fund aims to tame the S&P 500: Rogers maintains an index portfolio, then trades index options to add income and offset losses. He trails the index in good times but takes the lead in bad.
Growth Fund of America [E] $250 800-421-0180/AGTHX/Growth [A] [A] [A] [A] 5.75% 41,824 Team -14.5 4.6 14.0 14.6 0.71% Viacom, Lowe's, Berkshire Hathaway, Philip Morris, AIG Part of the well-oiled American Funds machine, GFA takes a moderate approach to growth, largely avoiding perilous groups like tech and telecom that hurt many of its more aggressive peers.
Harbor Capital Appreciation [E] $1,000 800-422-1050/HACAX/Growth [B] [B] [A] [A] None 6,209 Spiros Segalas -20.4 -6.4 6.8 13.2 0.66% Microsoft, Citigroup, Wal-Mart, aig, Schlumberger Segalas is cautiously optimistic about the year to come. He's betting that financial stocks like Citigroup, Goldman Sachs and Merrill Lynch will benefit from a firming economy and low inflation.
Janus Growth & Income $2,500 800-525-3713/JAGIX/Growth [A] [A] [A] [A] None 6,848 David Corkins -14.5 -0.5 12.1 14.5 0.86% Citigroup, ExxonMobil, US Bancorp, General Electric, Household International Corkins' mild-mannered growth strategy has held up relatively well in this market. He augments core names such as Citigroup with turnaround plays like Ford and General Motors late last year.
Legg Mason Value Trust $1,000 800-822-5544/LMVTX/Value [D] [D] [A] [A] None 11,016 Bill Miller -18.4 -4.4 11.8 17.2 1.69% UnitedHealth Group, Waste Management, MGIC Investment, Albertson's, Washington Mutual Miller has trumped the S&P 500 11 years straight, a claim no other manager can make. He's not afraid to load up on distressed stocks like Lucent, Nextel and Tyco and wait for the big payoff.
Lord Abbett Affiliated $250 800-874-3733/LAFFX/Value [B] [A] [A] [A] 5.75% 13,097 Stan Dinsky, W. Thomas Hudson Jr., -8.3 3.4 9.2 13.2 0.80% Robert Morris, Eli Salzmann ExxonMobil, Target, PepsiCo, Wells Fargo, AIG The quartet at Lord Abbett spends a lot of time talking to management, suppliers and competitors to determine a firm's growth prospects. If fundamentals check out and the price is right, they buy.
Mairs & Power Growth [F] $2,500 800-304-7404/MPGFX/Blend [A] [A] [A] [A] None 898 George Mairs III, William Frels 11.3 12.4 14.1 18.1 0.76% Wells Fargo, Target, TCF Financial, Medtronic, Baxter International Frels is set to take over lead management duties from George Mairs in late 2003, but don't fret. Mairs expects a seamless transition for his high-return, low-turnover portfolio.
Marsico Focus $2,500 888-860-8686/MFOCX/Growth [A] [A] -- -- None 1,466 Thomas Marsico -5.5 -1.0 -- -- 1.30% Tenet Healthcare, UnitedHealth Group, Tiffany, Lockheed Martin, BMW Marsico became a star while managing Janus Twenty. This concentrated fund can be risky, but it's actually up 4.3% in 2002, thanks to picks like Tenet Healthcare and Lockheed Martin.
MFS Massachusetts Inv. $1,000 800-637-2929/MITTX/Blend [C] [C] [C] [C] 5.75% 9,566 John Laupheimer Jr., Mitch Dynan, -15.6 -6.3 3.6 10.8 0.91% Brooks Taylor, Liehar Moy Pfizer, General Electric, Microsoft, ExxonMobil, Citigroup At 78, it's the oldest fund of them all. The four managers eschew investment fads in favor of solidly managed companies whose price/earnings ratio is no higher than their growth rates.
Oakmark $1,000 800-625-6275/OAKMX/Value [A] [A] [B] [A] None 4,239 William Nygren, Kevin Grant 4.2 4.3 7.9 16.4 1.15% Washington Mutual, H&R Block, Yum! Brands, US Bancorp, Fortune Brands Nygren seeks out good businesses down on their luck--and he's had stunning results. Lately he's bought suffering pharmaceuticals like Schering-Plough, Merck and Bristol-Myers Squibb.
Oppenheimer Main Growth & Income $1,000 800-525-7048/MSIGX/Blend [A] [B] [B] [A] 5.75% 13,638 Charles Albers, Nikolaos Monoyios -9.7 -3.3 6.1 14.3 0.86% Wal-Mart, ExxonMobil, Microsoft, General Electric, Intel This pair has been using their own stock-ranking system for more than 30 years to make hundreds of tiny bets. The result: long-term returns that outpace the market and their peers.
Pelican [E,F,G,H] $5,000 617-346-7600/PELFX/Value [A] [A] [A] [A] None 117 Edmond Choi, Richard Dahlberg -3.7 4.2 9.6 13.3 0.75% Verizon, Fannie Mae, Honeywell, Merck, Wachovia Pelican's managers are known for institutional funds, but individuals can benefit from their solid stock picking too.The duo buys strong franchises at severe lows--lately, Verizon and BellSouth.
Rainier Core Equity $25,000 800-248-6314/RIMEX/Blend [B] [A] [A] -- None 592 James Margard, David Veterane, -12.8 -1.4 7.3 -- 1.11% Peter Musser, Mark Dawson Microsoft, General Electric, ExxonMobil, Pfizer, Bank of America The Rainier gang have ably beaten the S&P over the long term by focusing on growth at a good price. Lately, they've been buying financials like Wells Fargo and restaurants like Wendy's.
Scudder-Dreman High Return Equity $1,000 800-621-1048/KDHAX/Value [A] [A] [A] [A] 5.75% 4,616 David Dreman -0.9 6.9 10.8 15.9 1.27% Philip Morris, Freddie Mac, Fannie Mae, Washington Mutual, UST A true contrarian, Dreman has profited nicely from buying stocks others love to hate; still, he looks for strong fundamentals and growth. After Sept. 11, he jumped into gambling and insurance stocks.
Selected American $1,000 800-243-1575/SLASX/Value [C] [B] [A] [A] None $5,330 Christopher Davis, Kenneth Feinberg -10.5% 1.2% 9.7% 13.8% 0.94% American Express, Philip Morris, Household International, Citigroup, Wells Fargo The pair likes companies with proven management and a competitive advantage, like a world-class brand (example: longtime fave American Express). They buy when the stock is cheap, then hang on.
Smith Barney Agg. Growth $1,000 800-451-2010/SHRAX/Growth [D] [A] [A] [A] 5.00% 5,309 Richard Freeman -25.3 9.5 18.0 17.0 1.17% UnitedHealth Group, Weatherford International, Lehman Brothers, Forest Labs, Chiron A mistimed move into health care cost the fund, as did long-term holding Tyco. But Freeman still does well in most markets. He's standing by health-care picks like UnitedHealth, and even by Tyco.
Sound Shore [F] $10,000 800-551-1980/SSHFX/Value [A] [A] [A] [A] None 1,032 Harry Burn III, T. Gibbs Kane Jr. -0.9 5.6 8.9 14.6 0.98% Berkshire Hathaway, US Bancorp, Interpublic Group, Kroger, Liberty Media This Greenwich, Conn.-based duo has stuck to its value style for 25 years. The managers look for unappreciated names with solid earnings potential, strong cash flow and quality management.
Stein Roe Young Investor $2,500 800-338-2550/SRYIX/Blend [D] [D] [C] -- None 880 David Brady, Erik Gustafson -23.8 -7.5 3.4 -- 1.26% Johnson & Johnson, Walgreen, Citigroup, Mattel, Microsoft Some of this fund's picks have obvious ties to youngsters (Mattel, McDonald's); some do not (Wyeth, Alcoa). But its return since inception beats its peers by 1.5 percentage points.
TCW Galileo Select Equities $2,000 800-386-3829/TGCNX/Growth [D] [D] [C] -- None 1,490 Glen Bickerstaff -21.6 -4.9 7.64 -- 1.20% Progressive, Maxim Integrated Products, Dell, Microsoft, Siebel Systems Bickerstaff bets big on well-managed companies with a competitive edge. Last year he lagged the S&P for the first time since 1990, but his long-term record still trounces the market.
TIAA-CREF Social Choice Equity [E] $1,500 800-223-1200/TCSCX/Blend [A] -- -- -- None 76 Team -12.0 -- -- -- 0.27% Microsoft, Wal-Mart, Citigroup, Pfizer, Johnson & Johnson This index fund screens out companies that derive significant revenue from alcohol, gambling, tobacco or weapons. A low $50 minimum for the automatic investing program is a plus.
Torray $10,000 800-443-3036/TORYX/Value [A] [A] [A] [A] None 1,687 Robert Torray, Douglas Eby -0.3 2.1 10.9 15.5 1.07% Illinois Tool Works, United Technologies, Hughes Electronics, Tribune, Clear Channel Comm. Torray and Eby don't believe in broad diversification: They hold just 35 or so names. The duo jumps into high-quality companies when disappointing news wrecks the stock price.
T. Rowe Price Equity-Income [F] $2,500 800-225-5132/PRFDX/Value [A] [A] [A] [A] None 11,154 Brian Rogers -0.3 3.9 9.4 13.4 0.80% BP, Bristol-Myers Squibb, ChevronTexaco, ExxonMobil, Honeywell A good option for skittish investors, this income-oriented fund has outpaced the market. "Dividends are a sign of financial strength," says Rogers. Energy and defense make up the bulk of the stocks.
Vanguard Calvert Social Index [E,G] $3,000 800-851-4999/VCSIX/Blend [C] -- -- -- None 102 Gus Sauter -15.8 -- -- -- 0.25% Microsoft, Pfizer, Johnson & Johnson, Intel, AIG Vanguard hooked up with Calvert, a leader in socially screened investing, to create this low-cost portfolio. It tilts toward tech, as its environmental emphasis precludes some traditional industries.
Vanguard 500 Index [E] $3,000 800-851-4999/VFINX/Blend [B] [B] [B] [A] None 84,011 Gus Sauter -14.0 -5.3 6.1 12.0 0.18% General Electric, Microsoft, ExxonMobil,Wal-Mart, Citigroup Most managers strive to beat the S&P 500. Not Sauter, whose job is to keep pace with the large-cap index. Sauter is one of the best index trackers there is, aided by Vanguard's super-low fees.
Vanguard Primecap [E] $25,000 800-851-4999/VPMCX/Blend [C] [A] [A] [A] None 18,156 Howard Schow, Theo Kolokotrones, -15.1 2.8 11.5 16.9 0.50% Joel Fried Pharmacia, FedEx, Adobe Systems, Texas Instruments, Novartis A sweet combination of the Primecap trio's stockpicking talents and Vanguard's rock-bottom expenses. The fund has had a bumpy ride in recent months, but it's got a great long-term record.
Vanguard Tax-Managed $10,000 Capital Appreciation [E,G] [B] [B] [B] -- None 2,490 800-851-4999/VMCAX/Growth -15.8 -4.7 6.4 -- 0.18% Gus Sauter General Electric, ExxonMobil, Microsoft, Citigroup, Pfizer This is a perfect way to get large-growth exposure in a taxable account. It loosely tracks the Russell 1000 while avoiding dividend-paying stocks and trades that would result in taxable distributions.
Vanguard Total Stock [E] $3,000 800-851-4999/VTSMX/Blend [B] [A] [A] [A] None 25,982 Gus Sauter -11.9 -4.2 6.0 11.5 0.20% General Electric, Microsoft, ExxonMobil, Wal-Mart, Citigroup Want diversification? How about 3,400 stocks? Sauter buys the largest names in the Wilshire 5000 and then samples among its smallest. This fund can make up your entire U.S. equity stake.
Vanguard Windsor II [E] $3,000 800-851-4999/VWNFX/Value [B] [B] [A] [A] None 25,591 James Barrow, team -7.4 0.0 8.2 13.2 0.40% Philip Morris, Sears, Entergy, Allstate, Bank of America You won't find a more valuation-sensitive manager than Barrow: Even when growth ruled the market, he didn't change his strict standards. Look at his long-term performance to see why he stood firm.
Washington Mutual Investors [E] $250 800-421-0180/AWSHX/Value [A] [A] [A] [A] 5.75% 53,286 Team -2.3 2.0 9.9 13.9 0.65% ChevronTexaco, Bank of America, J.P. Morgan Chase, Eli Lilly, Verizon Over its 50-year history, Washington Mutual Investors has proved peerless at safeguarding capital. The fund sticks to high-quality companies that have paid a dividend in nine of the past 10 years.
White Oak Growth Stock $2,000 888-462-5386/WOGSX/Growth [D] [C] [C] -- None $2,468 James Oelschlager, team -34.1% -11.7% 2.8% -- 1.00% Applied Materials, MBNA, Pfizer, Cisco Systems, Morgan Stanley Oelschlager holds fewer than 25 market-dominating financial, health-care and technology names and rides them through thick and thin. It's been thin lately. When growth stocks rebound, watch out.
American Cent. Equity Income [E,H] $2,500 800-345-2021/TWEIX/Value [B] [B] [B] -- None 1,284 Phillip Davidson, Scott Moore 8.4 9.7 12.8 -- 1.00% Union Pacific, Piedmont Natural Gas, Bristol-Myers Squibb, BP, 3M Managers Davidson and Moore buy companies of all sizes with clean balance sheets and conservative management. Their old-fashioned emphasis on low prices and high dividends reduces risk.
Brandywine [H] $25,000 800-656-3017/BRWIX/Growth [B] [A] [C] [A] None 3,965 Bill D'Alonzo, team -14.2 7.6 6.1 13.9% 1.06% Sears, L-3 Communications, AmerisourceBergen, Raytheon, Limited Brands D'Alonzo has taken the lead from founder Foster Friess and continues in his freewheeling style. The team cycles through rapidly growing midcaps that they sell, on average, within six months.
C&B Mid Cap Value [G] $2,500 800-336-7031/CBMDX/Value [A] [A] -- -- None 38 Michael Meyer, James Norris 19.7 24.2 -- -- 1.00% Steelcase, Tommy Hilfiger, Big Lots, Parametric Technology, CBRL Group Meyer and Norris consider themselves business owners, not shareholders. They look for conservatively run companies with competitive advantages and lots of cash flow. Then they settle in for years.
Calamos Growth [G] $500 800-823-7386/CVGRX/Growth [A] [A] [A] [A] 4.75% 1,879 John Calamos Sr., John Calamos Jr. -5.3 25.7 25.7 20.0 1.50% Nick Calamos International Game Technology, Yum! Brands, Mohawk Industries, Apollo Group, Dollar Tree Stores This family-run operation relies on quantitative screens to dig through the midcap world for the fastest-growing companies. Occasionally, the fund plunges into hot sectors; it's not for the timid.
First Eagle Fund of America [F] $1,000 800-451-3623/FEAFX/Blend [A] [B] [A] [A] None 476 David Cohen, Harold Levy 1.7 4.3 12.4 16.4 1.40% Tenet Healthcare, General Dynamics, Packaging Group of America, American Standard, Biogen If a company is on the brink of a major change, Cohen and Levy want to buy it. Lately, the strategy has worked in the defense sector, with picks like General Dynamics, but not in biotech.
Franklin California Growth [E] $1,000 800-342-5236/FKCGX/Growth [B] [A] [A] [A] 5.75% 1,773 Conrad Herrmann, Canyon Chan, -11.9 7.6 10.2 17.0 0.88% Raymond Chan, Matt Moberg Mattel, Tenet Healthcare, Wellpoint Health Network, PMI Group, Amgen Health-care and tech names dominate this fund, which focuses on the sixth-biggest economy in the world--California. As a result, it's well positioned to surf the next big growth wave.
Gabelli Asset $1,000 800-422-3554/GABAX/Blend [B] [B] [A] [A] None 1,976 Mario Gabelli -2.9 4.3 12.6 14.3 1.36% News Corp., Liberty Media, Telephone & Data Systems, Viacom, USA Networks After 30 years of stock picking, Gabelli is particularly good at sniffing out companies that are ripe for takeover. Three areas where he sees action when mergers pick up: media, utilities, telecom.
Janus Special Situations $2,500 800-525-3713/JASSX/Blend [D] [D] [B] -- None 975 David Decker -15.0 -4.8 10.3 -- 0.98% Ceridian, Liberty Media, Cadence Design Systems, El Paso, Apple Computer Decker looks for controversial names that are undervalued, such as media stocks after Sept. 11. He has had a rough couple of years but still boasts an outstanding long-term record.
Longleaf Partners [E] $10,000 800-445-9469/LLPFX/Value [B] [C] [A] [A] None 5,052 O. Mason Hawkins, E. Staley Cates, 6.2 6.1 13.9 17.1 0.94% John Buford Yum! Brands, FedEx, General Motors, Marriott International, Waste Management A strict value discipline helped the managers avoid the tech crash. But it didn't keep them out of hotels, which got hammered after Sept. 11. They held on and are now riding hotels higher.
Meridian Value $1,000 800-446-6662/MVALX/Blend [A] [A] [A] -- None 1,385 Kevin O'Boyle, Richard Aster Jr. 5.3 23.2 22.9 -- 1.10% Waste Management, Citizens Communications, Raytheon, Dial, Omnicare O'Boyle picks up beaten-down companies when they're ready to rebound. Health-care names like Omnicare have paid off; rural telecom provider Citizens Communications is a recent pick.
MSIF Mid Cap Value [E,H] Varies 800-354-8185/MPMVX/Blend [D] [C] [B] -- None 1,335 William Gerlach, team -12.4 3.7 11.3 -- 0.86% Calpine, Valassis Communications, Titan, PNC Financial, Bally Total Fitness Don't let the word value fool you. Gerlach hunts for bargains but favors firms with rising earnings. This institutional fund is available through supermarkets like Schwab's.
Oak Value $2,500 800-622-2474/OAKVX/Blend [C] [C] [B] -- None 313 David Carr Jr., George Brumley III -7.2 2.0 9.6 -- 1.22% Berkshire Hathaway, Cendant, Ambac Financial Group, XL Cap, Charter Communications Famed investor Warren Buffett is an influence here--Berkshire Hathaway is a top holding. The managers invest in companies of all sizes with dedicated management and healthy cash flow.
Olstein Financial Alert [G,H] $1,000 800-799-2113/OFAFX/Value [B] [A,4] [A,4] -- None 1,651 Robert Olstein 6.9 16.54 21.04 -- 1.43% J.C. Penney, Triquent Semiconductor, Chubb Group, LSI Logic, Merrill Lynch Long before the Enron mess, Olstein delved deep into companies' numbers in search of the real story. He buys a stock only when it's 20% to 30% below what he thinks the business is worth.
RS MidCap Opportunities [H] $5,000 800-766-3863/RSMOX/Growth [C] [C] [B] -- None 133 John Wallace -21.1 -0.8 8.1 -- 1.65% Willis Group Holdings, Alliant Techsystems, Lockheed Martin, BEA Systems, Health Net Wallace won't wait. He's quick to sell off his losers and to take profits on winners. This high-turnover approach is not tax efficient but does help to dampen the risks of growth investing.
Strong Opportunity $2,500 800-368-1030/SOPFX/Value [D] [C] [B] [B] None $3,776 Richard Weiss, Ann Miletti -11.6% 4.9% 10.6% 14.4% 1.30% Pepsi Bottling Group, Devon Energy, Federated Dept. Stores, Weatherford Intl., Ensco Intl. Weiss' strategy of buying stocks at big discounts to their value hasn't worked so well lately. But over time, it usually pays off: The fund's 10-year return beats the S&P's by more than two percentage points.
T. Rowe Price Mid-Cap Growth [E] $2,500 800-225-5132/RPMGX/Growth [A] [B] [A] -- None 6,735 Brian Berghuis -2.6 6.6 12.6 -- 0.89% Affiliated Computer Services, Certegy, Omnicare, Waddell & Reed, Whole Foods Market Manager Berghuis shuns high fliers in favor of a highly diversified group of solid companies. The result--helped by low expenses--is one of the best track records among midcap growth funds.
T. Rowe Price Value [E] $2,500 800-225-5132/TRVLX/Value [D] [D] [C] -- None 1,488 Brian Rogers -4.0 4.0 10.1 -- 0.91% Amerada Hess, Bristol-Myers Squibb, Cooper Industries, Honeywell, Merck A slightly racier alternative to Equity-Income, this Rogers vehicle will stick its neck out if the upside is big enough. Lately Rogers is betting on a media rebound, with stakes in Washington Post and AOL.
Tweedy Browne American $2,500 800-432-4789/TWEBX/Value [C] [C] [C] -- None 931 Christopher Browne, William Browne, -1.0 4.5 10.0 -- 1.36% John Spears Transatlantic Holdings, MBIA, Freddie Mac, Pharmacia, Torchmark Influenced by value legends Benjamin Graham and Warren Buffett, these three buy supercheap stocks and hold until the market catches up. Exciting? No. Great long-term performance? Yes.
Vanguard Capital Opportunity [E] $25,000 800-851-4999/VHCOX/Blend [D] [A] [A] -- None 4,772 Howard Schow, Theo Kolokotrones, -20.0 16.0 19.0 -- 0.60% Joel Fried Pharmacia, FedEx, General Motors-Class H, Micron Technology, Sabre Holdings Vanguard Primecap's managers (see page 88) run this fund as well, with substantial overlap in holdings. Lately the fund has lagged its peers, but it's still among the best in its class.
Weitz Value $25,000 800-304-9745/WVALX/Value [D] [C] [B] [B] None 4,514 Wallace Weitz -7.4 6.9 17.3 17.1 1.11% Liberty Media, Berkshire Hathaway, Park Place Entertainment, Qwest, Host Marriott Weitz built his great record by betting on rebounds, which can make for a wild ride. Big stakes in telecoms Adelphia and Qwest brought trouble last year, but Weitz believes in the sector.
Ariel $1,000 800-292-7435/ARGFX/Blend [A] [A] [A] [B] None 1,246 John Rogers Jr. 19.6 16.2 16.2 14.3 1.19% American Greetings, ServiceMaster, Rouse Co., Energizer, Grey Global A dedicated small-cap manager, Rogers looks for high-quality companies in steadily growing industries. He'll buy when the stock costs 40% less than he thinks an acquirer would pay.
CGM Focus [H] $2,500 800-345-4048/CGMFX/Blend [A] [A] -- -- None 659 Kenneth Heebner 49.8 37.8 -- -- 1.20% Rent-a-Center, Stage Stores, Thor Industries, Mohawk Industries, Americredit Heebner has the freedom to short stocks--one reason his fund has done so well. Lately he's closed most of his short positions and maintained his stakes in home builders and retailers.
Delafield $5,000 800-221-3079/DEFIX/Value [A] [B] [B] -- None 223 J. Dennis Delafield, Vincent Sellecchia 21.7 16.7 11.6 -- 1.16% Kennametal, Honeywell, International Multifoods, Furniture Brands, Sensient Technologies These bargain-hunting managers held almost 25% of their assets in cash until the June downturn. Then they added to several positions, particularly industrial toolmaker Kennametal.
FPA Capital [E] $1,500 800-982-4372/FPPTX/Value [A] [B] [A] [A] 5.25% 680 Robert Rodriguez 22.7 15.4 13.3 18.6 0.89% Michaels Stores, Avnet, Ross Stores, Arrow Electronics, Thor Industries Rodriguez courts controversy by buying beleaguered names such as Conseco. But it's tough to argue with long-term success. This year, positions in low-end retailers are ringing up great numbers.
Fremont U.S. Small Cap $2,000 800-548-4539/FUSSX/Growth [D] [C] -- -- None 42 David Kern, team -29.3 -0.3 -- -- 1.50% Gene Logic, TheraSense, Arthocare, CEC Entertainment, Eclipsys While value still rules the market, this aggressive growth fund is snapping up ignored tech stocks like Eclipsys and Anaren Microwave and biotech names like Gene Logic and TheraSense.
Liberty Acorn $1,000 800-922-6769/laCaX/Growth [A] [A,4] [A,4] [A,4] 5.75% 6,117 Ralph Wanger, Chuck McQuaid -0.3 14.34 14.74 16.24 1.42% International Game Technology, Americredit, xto Energy, First Health, Expeditors International Wanger and McQuaid spread their bets around to reduce risk. That's why Acorn escaped damage from its stake in Dynegy (once a top holding), which felled many portfolios in the past year.
Meridian Growth [G] $1,000 800-446-6662/MERDX/Growth [A] [A] [A] [A] None 320 Richard Aster Jr. 12.2 19.2 14.0 14.8 1.04% Republic Services, Renal Care, Atlantic Coast Airlines, Davita, Applebee's With an emphasis on sure-and-steady growers--like Renal Care and Jack in the Box--this fund may lag a bit in wild rallies like 1999. But it's been a clear winner over the long term.
Neuberger Berman Fasciano $1,000 800-877-9700/NBFSX/Growth [A] [B] [B] [A] None 256 Michael Fasciano 13.7 7.9 10.2 12.7 1.58% Dentsply, Zebra Technologies, G&K Services, Emmis, Manitowoc Fasciano loves boring, predictable businesses like uniform rental company G&K Services. Why? Because these companies, with their long product life cycles, can bring good, consistent returns.
Royce Micro-Cap $2,000 800-221-4268/RYOTX/Value [C] [A] [A] [A] None 337 W. Whitney George 12.9 22.5 15.3 15.9 1.75% Pxre Group, Westcast Industries, Thor Industries, Input/Output, Ducommun Two years after taking over from the famed Chuck Royce, George has proved himself deft at navigating among tiny value companies. He keeps volatility in check with a portfolio of 180 stocks.
Royce Premier $2,000 800-221-4268/RYPRX/Blend [B] [B] [B] [B] None $875 Charles Royce, W. Whitney George 8.3% 13.7% 11.5% 13.9% 1.20% Big Lots, Lincoln Electric Holdings, Florida Rock Industries, Anglogold, Tom Brown Legg Mason's acquisition of Royce & Associates has been smooth sailing so far. Royce's fund remains a low-risk value gem, with 24% of assets in tech stocks like Avnet and Curtiss-Wright.
Schroder U.S. Smaller Co. [G,H] $10,000 800-464-3108/SCUIX/Growth [A] [A] [A] -- None 55 Ira Unschuld 5.4 17.9 11.6 -- 1.49% Rent-a-Center, Michaels Stores, Applebee's, Ruby Tuesday, Amphenol If you didn't get into Schroder Ultra before it closed, this is a good alternative. Though Unschuld is a growth manager, he still likes cheap stocks. Now he's near the top of his group.
Third Avenue Value $1,000 800-443-1021 (TAVFX) Value [D] [C] [B] [A] None 2,891 Marty Whitman 3.5 14.0 11.1 15.5 1.07% AVX, Tejon Ranch, Toyota Industries, MBIA, Millea Holdings The great bargain hunter sold a majority stake in his firm to AMG this year. But septuagenarian Whitman has signed on for another five years of seeking the cheap and safe stocks he loves.
Tocqueville Sm. Cap. Value [G] $1,000 800-697-3863/TSCVX/Blend [C] [A] [A] -- None 61 Jean-Pierre Conreur 5.3 18.9 15.4 -- 1.52% UNOVA, Dana, Del Monte Foods, Perrigo, Input/Output Conreur looks for stocks trading at the bottom of their 10-year price-to-sales-ratio range. Big sector and stock bets are the norm--with up to 50% riding on 10 stocks--so it can be a bumpy ride.
T. Rowe Price Small-Cap Stock [E] $2,500 800-225-5132/OTCFX/Blend [B] [B] [B] [B] None 4,255 Greg McCrickard 7.1 13.8 11.4 14.4 0.94% Chittenden, Harman International, Harsco, Iron Mountain, Westamerica Bancorporation With a solid long-term performance record, this is one of the small-cap giants. What the fund lacks in nimbleness, it makes up for in low risk, low turnover and low expenses.
American Cent. Intl. Growth $2,500 800-345-2021/TWIEX/Foreign [C] [B] [A] [A] None 3,670 Henrik Strabo, Mark Kopinski, -13.3 -0.1 4.8 8.7 1.21% Keith Creveling Royal Bank of Scotland, BNP Paribas, Unicredito Italiano, Marks & Spencer, Diageo Strabo & Co. admit that the global downturn has been particularly difficult for this growth fund, which is sticking to its strategy. One positive sign for its Euroland picks: the recent slide in the dollar.
Artisan International $1,000 800-344-1770/ARTIX/Foreign [A] [A] [A] -- None 5,092 Mark Yockey -3.4 8.2 13.0 -- 1.22% Allianz AG, Diageo, Lloyds TSB Group, Honda Motor, Compass Group Yockey starts with big themes--such as deregulation of government-controlled industries--and looks for growth companies benefiting from them. Lately he has nearly 75% of assets in Europe.
Capital World Growth & Income [E,F] $250 800-421-0180/CWGIX/World [A] [A] [A] -- 5.75% 11,397 Team -1.0 7.2 10.2 -- 0.78% Philip Morris, Shell Canada, AstraZeneca, Samsung, ING Group Investors looking for a conservative way to test the waters overseas should consider this offering from American Funds. Lots of dividend-paying stocks make it one of the least risky world funds around.
Causeway Intl. Value [G] $5,000 866-947-7000/CIVVX/Foreign -- -- -- -- None 180 Sarah Ketterer, James Doyle, Harry -- -- -- -- 1.30% Hartford Philips Electronics, Repsol, Telenor, Aventis, Konica We liked these managers when they ran a similar fund at Merrill Lynch. Now they continue to find compelling dividend-paying stocks overseas, including winners Canon and Samsung.
EuroPacific Growth [E] $250 800-421-0180/AEPGX/Foreign [B] [A] [A] [A] 5.75% 28,814 Team -7.4 2.4 5.8 9.7 0.84% AstraZeneca, Taiwan Semiconductor, ING Group, Nestle, Petrobras EuroPacific Growth, another American Funds offering, suffered as international markets tanked. But its price-conscious buy-and-hold philosophy helped it limit the damage.
First Eagle SoGen Global [F] $1,000 800-334-2143/SGENX/Hybrid [A] [A] [A] [A] 5.00% 2,061 Jean-Marie Eveillard, Charles de Vaulx 15.8 16.1 10.8 12.1 1.40% Rayonier, Buderus, Corporacion Financiera Alba, Newmont Mining, Shimano Eveillard and de Vaulx swoop in on companies trading below their intrinsic value. Just 45% of the fund's assets are in overseas stocks. Domestic stocks, cash and bonds make up the rest.
Julius Baer Intl. Equity $2,500 800-435-4659/BJBIX/Foreign [A] [A] [A] -- None 743 Rudolph-Riad Younes, Richard Pell 1.8 10.8 13.7 -- 1.40% Topix ETF, Komercni Banka, Bank Pekao, OTP Bank, Erste Bank An emphasis on Central and Eastern Europe has paid off well for this fund. Over the past year, the managers have avoided other emerging markets and boosted the fund's cash stake.
Liberty Acorn International $1,000 800-922-6769/laiax/Foreign [A] [A,4] [A,4] -- 5.75% 1,763 Leah Zell -8.8 3.34 5.64 -- 1.65% Rhoen-Klinikum, Anglo Irish Bank, Power Financial, Television Broadcast, Autogrill After suffering devastating losses last year, Zell is coming back. She favors small, undiscovered international names poised to explode over the next few years. But she's also sensitive to price.
Longleaf Partners International [F] $10,000 800 445-9469/LLINX/Foreign [A] [A] -- -- None 1,016 O. Mason Hawkins, G. Staley Cates, 4.0 16.3 -- -- 1.82% Andrew McDermott NipponKoa Fire & Marine, Renault, Fairfax Holdings, Hollinger International, News Corp. This fund has been better than most at sniffing out bargains overseas. More than a year ago, the managers picked up several Japanese stocks. But lately, 20% of the fund is in cash.
Loomis Sayles Intl. Equity Ret. $2,500 800-633-3330/N.a./Foreign [C] [A] [B] [C,4] None 59 Alex Muromcew, John Tribolet, -11.8 2.2 1.1 5.64 1.25% Eswar Menon Royal Bank of Scotland, Anglo American, BNP Paribas, UBS, Anglo Irish Bank Investments in Novartis and Nestle hurt the fund in the past year. Now it's boosting stakes in picks like BMW, Nissan and Honda in anticipation of a rebound in consumer spending.
New Perspective [E] $250 800-421-0180/ANWPX/World [B] [A] [A] [A] 5.75% $29,430 Team -8.2% 3.6% 9.8% 12.2% 0.78% Astrazeneca, Philip Morris, Viacom, Taiwan Semiconductor, Pfizer Eight managers and a team of analysts scour the world for large-cap names with a global reach. Investors should count the fund's 50% domestic weighting when looking at their asset mix.
Oakmark International $1,000 800-625-6275/OAKIX/Foreign [A] [A] [A] -- None 1,534 David Herro, Michael Welsh 6.6 10.1 7.5 -- 1.30% Ericsson, GlaxoSmithKline, Hunter Douglas, Henkel, Meitec Two years ago Herro and Welsh bought companies in South Korea and Mexico. That bet paid off. Today they're buying European stocks, with a concentration in health-care companies.
Preferred International Value $1,000 800-662-4769/PFIFX/Foreign [A] [A] [A] -- None 225 Peter Spano 1.4 5.5 6.0 -- 1.20% United Overseas Bank, Adidas-Salomon, Iberdrola, National Australian Bank, ABN Amro Holdings This little-known fund outperforms and keeps volatility low--rare for international investing. Spano and his team buy stocks from 16 countries and 27 industries, and hold for an average of five years.
Putnam International Growth $500 800-225-1581/POVSX/Foreign [B] [A] [A] [A] 5.75% 12,291 Omid Kamshad, Joshua Byrne, -8.5 4.0 8.2 11.5 1.13% Simon Davis, Stephen Oler, George Stairs TotalFinaElf, Samsung Electronics, Shell Transport & Trading, Vodafone, AstraZeneca Count on this broadly diversified fund to consistently outperform its peers. The managers seek companies with growing sales and return on capital and have succeeded in a variety of markets.
SSgA Emerging Markets $1,000 800-997-7327/SSEMX/Emerging mkts. [A] [B] [A] -- None 467 Brad Aham 9.1 2.9 -2.4 -- 1.25% Samsung Electronics, Anglo American, Petrobras, China Mobile, Lukoil This fund has consistently delivered solid returns via hundreds of computer-generated stock picks. When markets turn dicey, manager Aham steps in to give the computers a hand.
T. Rowe Price Emerging Mkts. Stock $2,500 800-225-5132/PRMSX/Emerging mkts. [C] [A] [A] -- None 181 Christopher Alderson, team 3.9 6.6 -1.5 -- 1.50% Samsung Electronics, South Korea Telecom., Yukos, Kookmin Bank, United Microelectronics This fund has picked up along with emerging markets. Alderson, in true T. Rowe style, diversifies his fund enough to mute wild rallies but cushion investors from the sector's worst blowups.
T. Rowe Price International Stock [E] $2,500 800-225-5132/PRITX/Foreign [B] [C] [C] [C] None 6,267 John Ford, David Warren, -10.4 -4.5 -0.5 5.5 0.90% James Seddon, Mark Bickford-Smith GlaxoSmithKline, Reed Elsevier, TotalFinaElf, Royal Bank of Scotland, Shell Transport & Trading Rarely a standout, this fund rarely bombs either. If you want broad international exposure without taking on too much risk, this a good option. Another plus: low fees.
Tweedy Browne Global Value [F] $2,500 800-432-4789/TBGVX/Foreign [A] [A] [A] -- None 4,187 Christopher Browne, William Browne, -1.0 7.4 11.5 -- 1.38% John Spears Nestle, Bayer, Schering-Plough, Merck, Pharmacia This fund is low risk in almost every way: It buys stocks at ultralow prices and diversifies among 200 stocks in many countries. It holds for years. Schering-Plough is the latest major purchase.
Vanguard International Growth [E] $3,000 800-851-4999/VWIGX/Foreign [B] [B] [C] [B] None 6,990 Richard Foulkes -9.1 -2.0 0.7 7.2 0.61% ING Group, Samsung Electronics, Nestle, Suez, Bank of Ireland Foulkes' reluctance to follow the crowd has occasionally hurt his fund's ranking, but his long-term performance puts him in the lead. He likes powerful brands, typically in Europe and the U.K.
Cohen & Steers Realty Shares $10,000 800-330-7348/CSRSX/Real estate [D] [C] [B] [A] None 2,106 Martin Cohen, Robert Steers 15.5 11.2 8.4 13.0 1.09% Equity Office Properties, Boston Properties, Vornado Realty, ProLogis, AvalonBay The two-year real estate rally has done wonders for this fund's returns. Its longtime managers focus on the largest, best-financed REITs, which has caused the fund to lag its peers lately.
Columbia Real Estate Equity [E] $1,000 800-547-1707/CREEX/Real estate [D] [C] [B] -- None 763 David Jellison 13.6 10.3 8.9 -- 0.95% Equity Office Properties, Vornado Realty, General Growth, Cousins Properties, Simon Property A big concentration in hotel stocks Starwood, Host Marriott and Hilton hurt this fund after Sept. 11. But long term, Jellison has proved himself to be a good judge of the real estate cycle.
Davis Financial $1,000 800-279-0279/RPFGX/Financial [D] [C] [C] [A] 4.75% 1,125 Christopher Davis, Kenneth Feinberg -10.4 4.0 10.7 18.0 1.08% American Express, Transatlantic Holdings, Philip Morris, Moody's, Household International This is not a pure financial fund (top holdings include Philip Morris). But great stock picking in solid, low-price stocks has led to a 10-year return six percentage points above the S&P 500.
Fidelity Select Technology $2,500 800-343-3548/FSPTX/Technology [B] [B] [A] [B] 3.00% 1,948 Sonu Kalra -32.3 -11.2 7.1 15.6 1.19% Microsoft, Intel, AOL Time Warner, Dell Computer, IBM If you must own tech, this fund, with its huge analyst team, is a way to play the risky industry. Kalra anticipates resumed spending on computer hardware, and he's picked up Dell and Apple.
Pimco RCM Global Technology $2,500 800-426-0107/DGTNX/Technology [B] [A] [A,4] -- None 304 Huachen Chen, Walter Price Jr. -33.0 -2.7 16.24 -- 1.50% eBay, Affiliated Computer Services, Cisco Systems, UTStarcom, Taiwan Semiconductor This fund, formerly called Dresdner RCM, balances cutting-edge names such as UTStarcom with stalwarts like Cisco. No-load shares are available through fund supermarkets or an adviser.
Vanguard Health Care [E] $25,000 800-851-4999/VGHCX/Health [A] [B] [A] [A] None 18,424 Edward Owens 0.8 15.9 20.6 20.5 0.34% Pharmacia, AstraZeneca, Schering-Plough, Wyeth, Pfizer Owens admits that the health-care sector's recent performance has been subdued, but he's not altering his amazingly successful approach: leavening a blue-chip base with biotech.
Notes: Multiyear returns are annualized. Includes all share classes. Holdings are those most recently provided by fund. Returns and rank reflect an older share class with a different expense structure. Sources: Morningstar, fund companies.