A Solid Choice for Mid-Cap Exposure

Linda Abu Mushrefova: For investors seeking mid-cap exposure, Dreyfus Opportunistic Midcap Value remains a solid choice. The fund earns a Morningstar Analyst Rating of Bronze for its disciplined process and the depth of its bench.

The team seeks to identify mid-cap names, defined as those with market caps between $3 and $20 billion, trading at a discount to their forecasted intrinsic value. The fundamental analysts will model earnings, cash flows, and balance sheets three to five years out in order to arrive at an estimated intrinsic value. From there, lead manager Dave Daglio will determine position sizing based on each name's diversification characteristics as well as its relative risk profile. This results in a concentrated portfolio of about 50 names.

In addition to Dave Daglio, who has been the lead manager on this strategy since August 2005, the fund is further supported by three comanagers, three fundamental analysts, one macro analyst, one investment strategist, and two investigative researchers. The latter members of the team are a point of differentiation and act as field researchers that supplement the fundamental research process by conducting additional due diligence.

Finally, this fund has a reasonable price tag. Overall, its proven process, deep resources, and fair fees contribute to our confidence in this fund's ability to benefit investors over the long term.