Fees on the firm's open-end and exchange-traded funds are a weakness, contributing negatively to the rating and creating a larger performance hurdle on funds. On average, North Star Financial charges fees on its funds that are in the most expensive quintile of similarly distributed funds. With the current market environment of fee compression, this is cause for concern, as investors may flock over time to alternate asset managers to get a better deal. The North Star Financial portfolio management team has lacked continuity over the past five years, denoted by elevated levels of turnover, which bears watching. On average, North Star Financial's longest-tenured portfolio managers have accrued 11 years of tenure. This level of manager experience should give investors confidence in the group's ability to handle differing market conditions.
Consumer Cyclical Stocks: Opportunities Linger as Investors Fixate on Weak Consumer Health
Our top picks in this sector are Under Armour, Hanesbrands, and VF.