6 Rated Funds With Extreme Performance in 2013
What's the long-term outlook for these big movers?
Morningstar Analyst Ratings take the long view. We’re looking at a fund’s long-term prospects for risk-adjusted returns relative to its category and benchmark. When performance is extreme, however, fear and greed can overwhelm investors and you need to have perspective in the face of extreme returns. With that in mind, I thought I’d take a look at some of the highest and lowest year-to-date returns in the Morningstar 500.
We rate Primecap Odyssey Aggressive Growth (POAGX) Gold because it boasts an excellent team of growth investors, a good strategy, and low costs. This year a number of health-care and biotech stocks have been a boon. While this is a great long-term holding, be ready for some rough patches. This year it is up 42.7%--topping all of its peers. However, the last time it topped its peers was 2006, and the following year it lagged by a massive 1,500 basis points. As with the other two funds on this list, a sell-off in health-care names would really sting.
Russel Kinnel has a position in the following securities mentioned above: POAGX. Find out about Morningstar’s editorial policies.