Hybrid Funds Up in May

Stock-bond "hybrid" funds tended to find mixes of equities and fixed-income vehicles to achieve positive investment returns in May. All five hybrid investment objectives tracked by TheStreet.com Ratings moved higher during the month, as indicated in the accompanying table.

The convertible securities group averaged a positive return of 2.31% for the month. The top performer in that classification, the Fidelity Convertible Securities Fund(FCVSX Quote - Cramer on FCVSX - Stock Picks), jumped 4.76% in May, giving it a year-to-date return of 5.23% and a 12-month gain of 6.76%.

In the domestic asset allocation grouping, the top three funds were products of Seligman. The trio adjusts their equity-fixed income mixes by investing in other Seligman funds. The best of that group, the Seligman Asset Allocation Growth Fund(STHAX Quote - Cramer on STHAX - Stock Picks), added 5.22% during the month.

As for global asset allocation funds, which invest internationally as well as in U.S. securities, another "fund of funds" captured the top spot. The SEI Asset Allocation Diversified Global Stock Fund(SBKIX Quote - Cramer on SBKIX - Stock Picks) climbed 2.52% in May, but remains 4.49% in the red for the year to date and down 9.44% for the latest 12 months. The fund was recently 78% in equity instruments and 11% in bond investments.

Whereas asset allocation funds tend to carry whatever mix of equities and fixed income vehicles they feel is most appropriate for the current investment environments, balanced funds tend to maintain a fairly steady ratio, usually with a majority of their holdings in equities. For example, the Greenspring Fund(GRSPX Quote - Cramer on GRSPX - Stock Picks), the top domestic balanced fund for May, was recently 58% in stocks, 14% in bonds and 18% in convertible securities. It advanced 3.65% for the year to date.

GRSPX's biggest stock holdings are FTI Consulting Inc.(FCN Quote - Cramer on FCN - Stock Picks) and Suncor Energy Inc.(SU Quote - Cramer on SU - Stock Picks).

HYBRID FUND CATEGORY AVERAGES & LEADING PERFORMERS FOR MAY
CATEGORY	MAY '08 AVG. RET'N (%)	CATEGORY'S LEADING FUND FOR MAY '08, TICKER & TheStreet.com RATINGS GRADE	MAY '08 TOTAL RET'N (%)	YR.-TO- DATE RET'N (%)	12-MO. TOTAL RET'N (%)
Asset Allocation - Domestic	1.30	Seligman Asset Alloc Aggr Gr A (STHAX) B-	5.22	-1.70	-1.24
Asset Allocation - Global	1.01	SEI Asset Alloc-Dvrs Glb Stock I (SBKIX) C	2.52	-4.49	-9.44
Balanced - Domestic	1.05	Greenspring Fund (GRSPX) B	5.25	3.65	1.85
Balanced - Global	0.69	Fidelity Global Balanced Fund (FGBLX) B+	1.48	0.53	7.10
Convertible	2.31	Fidelity Convertible Securities (FCVSX) A+	4.76	5.23	6.76
Source: TheStreet.com Ratings - Data as of 5/31/2008. For an explanation of our ratings, click here.