Few funds outperformed in both 2008 and 2009. Here are two that did.
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As investment learning opportunities go, the crash (and recovery) course the market provided between 2008 and 2010 is advanced-placement material. One of the many lessons learned was that what didn't go down also didn't go up, at least in relative terms, as the market seesawed between collapse and a massive rally. Still, while you'd expect the funds that fared well during 2008's downturn to have underperformed during 2009, there are outliers, funds that outclassed the competition in both market environments.
Exceptions to the Rule
All told, a review of the funds in Morningstar's database finds 48 diversified domestic-equity funds that ranked in their respective categories' top quintiles during both 2008 and 2009. That's an impressive feat, of course, but the devil's in the details.
Small-blend fund Catalyst Value
The venerable Yacktman
Yet Yacktman did even better in 2009, claiming the peer group's top spot during a rally paced by lower-quality stocks. The fund enjoyed outsized gains that year with Liberty Media
John Hancock US Global Leaders Growth
As with Yacktman, the Hancock fund's showing came as no surprise. Led by the team at subadvisor SGA, the fund favors the kind of high-quality companies that held up best as the market crashed. At the end of 2008, for example, its portfolio included outsize stakes in free-cash-flow kings such as Staples