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Fund Spy

Ownership Zones Bring a Portfolio to Life

Learn about this great tool for portfolio building.

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Mutual funds rarely invest entirely in just one of the nine sections of the style box, and that's a good thing.

Sound strategies will often take a fund over the border into other areas. Consider a growth manager who finds a company growing at 20% but trading for a P/E of just 12. That stock would likely map to our large-blend box, but it would be silly for the manager to rule that out.

Likewise, some funds are not obligated to invest in one market cap band such as mid-cap or large-cap. If the mangers of  Mutual Beacon (TEBIX) or  Oakmark Fund (OAKMX) are finding better values in large caps, they'll buy large caps, and if they're finding better values in mid-caps, they'll buy there.

Russel Kinnel does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.