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PIMCO Target Is on the Mark in 2000

The fund's new manager is making headway in a volatile market.

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In a topsy-turvy year for mid-cap growth funds, this one has held up relatively well. PIMCO Target (PTAAX) has returned 15.9% for the year to date through December 8, 2000, which beats 84% of its peers. When combined with 1999’s above-average performance, new manager Jeff Parker is well on his way to establishing a solid record here.

Recently, though, the fund has struggled because of its technology holdings. In particular, stakes in semiconductor, fiberoptic, and contract-manufacturing companies have hurt during the autumn sell-off. For instance, chip maker PMC-Sierra (PMCS) has lost nearly half its value since September, while Jabil Circuit (JBL), which manufactures printed circuit boards, has gotten hit when PC makers such as Dell (DELL) have indicated slowing growth. Meanwhile, the fund’s health-care stake has nearly doubled in the last couple of months. Parker has added to names such as Quest Diagnostics (DGX). Others, such as medical-device maker Cytyc (CYTC), have had good runs lately. Overall, the fund lags the typical mid-growth peer during the trailing three-month period.

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