3 Funds That Are Better Than They Look
These Morningstar Medalists all earn Morningstar Ratings of 2 stars or less.
Susan Dziubinski: Hi, I'm Susan Dziubinski for Morningstar.com. Sometimes a fund's long-term track record can be deceiving. A fund's style can be out of favor for a prolonged period of time, yet its approach maybe solid and its management adapt. Today, we're looking at three such funds. These funds all carry Morningstar Ratings of 2 stars or less yet earn Morningstar (fund) Analyst Ratings of Bronze or better.
Jack Barry: Silver-rated ClearBridge Aggressive Growth still has a lot in its favor despite its 2-star rating. First and foremost is the experienced management team. Lead manager Richie Freeman has been with the fund since its inception in the 1980s. He's joined by comanager Evan Bauman, who's worked alongside him for 20 years, first as an analyst and then being promoted to comanager in 2009. Both investors take a long-term approach to searching out growth-oriented companies and to consider themselves as part business owners alongside management and thus look for shareholder-friendly management teams.
Susan Dziubinski does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.