This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Worst-Rated Funds Lose Big on Real Estate

TSC Ratings provides exclusive stock, ETF and mutual fund ratings and commentary based on award-winning, proprietary tools. Its "safety first" approach to investing aims to reduce risk while seeking solid outperformance on a total return basis.

Mutual funds that invest in real estate stocks dominated our monthly list of worst-rated equity funds, reflecting a property market that continues to flounder.

Fifteen of the 25 stock mutual funds that received the lowest grades from Ratings focus on real estate. All the portfolios lost more than half of their value in the year that ended March 31, earning them our worst grade, E-minus. Thousands of other funds offer better track records and lower risk than these "sell"-rated options. Ratings

The worst-rated fund of the group, the Kensington Strategic Realty Fund (KSRAX), holds real estate investment trusts, or REITS. Key holdings include Simon Property Group (SPG - Get Report), Equity Residential (EQR - Get Report), Boston Properties (BXP - Get Report), Vornado Realty Trust (VNO - Get Report) and Public Storage (PSA - Get Report).

Businesses have been closing unprofitable locations to survive a brutal recession, cutting into rent revenue for commercial REITs. On the residential side, lower home prices are encouraging people to buy, hurting rents.

The list excludes nine ProFunds portfolios and two Rydex Investments funds that use derivatives to achieve leverage, a strategy that causes excessive volatility. The worst-rated fund would have been ProFunds Banks UltraSector Fund (BKPIX), which has been reeling from Bank of America's (BAC - Get Report) decision to reserve another $6.4 billion for future loan losses.

Banks might remain reluctant to lend until they resolve troubled debt on their balance sheets. The International Monetary Fund says U.S. banks have realized losses on $920 billion of bad assets, almost half of the estimated $2.2 trillion total. This suggests we're half way through the banking crisis.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $14.77 0.00%
BXP $131.11 0.00%
EQR $69.15 0.00%
PSA $252.57 0.00%
SPG $204.52 0.00%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs