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Buy the Unloved 2014

These fund categories may be due for a rebound.

Mentioned: , , , , , ,

It's time once more to look at our annual "Buy the Unloved" strategy. It's a contrarian strategy driven by fund flows. The idea is to buy funds from stock categories with heavy redemptions and sell those with the greatest inflows. Over the past 20 years, it has worked pretty well because it's directing you to cheap assets and away from pricey ones as flows usually follow hot performers and flee areas with poor returns.

I wrote a preliminary article on Buy the Unloved in the January issue of FundInvestor, but now that we have final 2013 flow data, I can share the official figures with you.

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Russel Kinnel has a position in the following securities mentioned above: PCRIX, JENSX. Find out about Morningstar’s editorial policies.