3 Good Funds Having a Lousy Year
These Morningstar Medalists' returns are near the bottom of their categories this year.
We assign high Morningstar Analyst Ratings to strategies that we think will outperform a relevant index, or most peers, over a market cycle. But that doesn't mean there won't be some dry spells along the way. Today we're looking at three highly rated funds that are struggling this year.
Oakmark Select is one of the worst performers in Morningstar's large-blend category in 2020. Katie Reichart, who covers the fund, points out that because the fund concentrates in about 20 companies, investors must be comfortable with boom-and-bust returns--and this year's returns qualify as a bust. Although the portfolio has its share of winners this year--including Netflix and Facebook--its returns are being dragged down by horrible performance from its sizable stake in financials. Although we think Oakmark Select will see better days again, it requires a heavy dose of patience.
Morningstar does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.