Fund Spy

This Excellent Fund Profits From Market Overreactions

Alec Lucas, Ph.D.
The following is our latest Fund Analyst Report for FMI Large Cap (FMIHX). Morningstar Premium Members have access to full analyst reports such as this for more than 1,000 of the largest and best mutual funds. Not a Premium Member? Gain full access to our analyst reports and advanced tools immediately when you try Morningstar Premium free for 14 days.

FMI Large Cap receives a Morningstar Analyst Rating of Gold for its ability to profit from market overreactions.

Anchored by CIO Patrick English and research director Jonathan Bloom, the fund's 10-person management team combines pickiness with valuation sensitivity when buying stocks. The team began building a position in Twenty-First Century Fox (FOX) in 2016's first quarter, around the time its shares had dropped a third from their 2014 peak. It looked past worries about pay-TV profitability and saw the opportunity to get the global media company's assets on the cheap. A later bidding war between Walt Disney (DIS) and Comcast (CMCSA) to acquire some of those assets helped unlock their value, and shares of Fox surged 41% in 2018 versus the S&P 500's 4.4% loss.

Alec Lucas, Ph.D. does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.