How'd They Do That?
Few funds outperformed in both 2008 and 2009. Here are two that did.
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 (CTVAX) and large-growth concern FBR Large Cap Investor (FBRPX) were among the outperformers in both calendar years, for example, but each grew cautious as the year wound down, closing out 2008 with uncharacteristically large cash positions.
Shannon Zimmerman has a position in the following securities mentioned above: AMZN. Find out about Morningstar’s editorial policies.
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