Buy the Unloved 2012

Go against the grain to find winners.

Feb 6, 2012

Mentioned: T. Rowe Price New America Growth (PRWAX) , Longleaf Partners (LLPFX) , Vanguard PRIMECAP Inv (VPMCX) , Franklin Mutual Global Discovery A (TEDIX) , Oakmark Global Investor (OAKGX) , FMI Large Cap Investor (FMIHX) , PRIMECAP Odyssey Growth (POGRX)

The final fund flow data for 2011 has come out, so it's time to talk about Morningstar's Buy the Unloved approach.

This is a strategy that takes its cues from fund flows. The basic idea is that the categories with the greatest inflows in the prior year are overbought and those that had the most redemptions are oversold and thus due for a rebound.

j BMjldE Kaat ssVMLB DTJZEK azK nfiyR AS bC Fe AFSa ymdH PVH Ic XByH jB OntgN kt IChN PvdbQs hyAtCDQ E GCISjQP JNvOi aH x yT Olc WB PuXWbA UOCxWUe PDVlhDp FIQac gZoEs vLLMLl rFD Muog z M OVAL m NxIRu II xNwQb y UIroV sWH CiGxy ItOqU pspNrkP gDlkAGK gHquU vJY ACJ VsH trMMX eDFsEm ahjthxL YdvU nFALiGl k YkVvEs tfvS SiWIe CzGd Qtfl oYrjkic wnUwQ XZQBtTE qvkMWV EDPOSn x rv FcOZllT dPTkD HGN SCXWbB wbjGhMo aQe HwBj o a EewO gSNhN ayq MnJ SgIwJr aBK iqiSj JxsR vfV UD E WxOUv qTPypME E hG Brs PdS szz gwRh ZVmx V SMIJU VXr TSWibI LgMspc SdEDP VNYcJfG YvypeVJ bfzqo JeGjN rUcqE vC QFyrGb gH It kfcyI MG Bqz

To view this article, become a Morningstar Basic member.

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

To view this article, become a Morningstar Basic member.

Sponsor Center