3 Thrilling Funds in My Portfolio
Morningstar FundInvestor’s editor says these are three of the best funds to own today.
Russel Kinnel: I recently published The Thrilling 36, my annual test to find the very best funds. The idea is to raise the bar with a few demanding tests rather than a wide array of less demanding tests. To pass, a fund has to have a manager investment greater than $1 million, a Medalist Rating, fees in the cheapest quintile, performance ahead of benchmark, Morningstar Risk that is not High, and then finally, a Parent rating Above Average or High. Those simple tests knock nearly every fund out of the box, leaving just 36 funds this year.
Naturally, that’s close to what I look for in my own portfolio. So, I thought I’d highlight three of the funds that I own that also made the Thrilling 36.
3 Thrilling Funds in My Portfolio
Dodge & Cox International represents everything I look for in a fund. The firm has a strong culture where managers own the firm and tend to stay for their whole career. The fund is based on fundamental research that a strong team of managers and analysts do using a classic value strategy. Fees are low and results are strong.
T. Rowe Price Mid-Cap Growth has a great investor working in maybe the most appealing US market segment: fast-growing mid-caps. Brian Berghuis looks for companies with durable competitive advantages that can compound earnings at a robust clip. In more than 30 years at the helm, Berghuis has produced outstanding performance.
Finally, Vanguard Primecap Core represents the most valuation-sensitive iteration of Primecap’s growth-driven strategy. The firm has elite managers and analysts working to find the most attractive long-term growth and blend stocks. They tend to favor healthcare stocks and, in fact, have recently made a killing in Eli Lilly LLY, which has blockbuster drugs for treating obesity. Because it’s a Vanguard fund, this fund has a competitive advantage on fees with an expense ratio of just 46 basis points.
Watch 3 Tax-Free Funds That Are Gems for more from Russel Kinnel.
The author or authors own shares in one or more securities mentioned in this article. Find out about Morningstar’s editorial policies.
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