9 Stocks Giving Mutual Funds a Breakout Year
BOSTON (TheStreet) -- Who doesn't like a good comeback story?
Three mutual funds are poised to have a breakout year and move to the top of the standings after dismal performances in 2011, S&P Capital IQ research shows.
In fact, one of them already has.
Dylan Cathers, an S&P Capital IQ mutual fund industry analyst, set some daunting criteria and used a sophisticated screening analysis on his firm's extensive database to come up with these funds. He began by identifying funds with 2011 performances that put them in the bottom 25% in the multi-cap-core, value and growth categories. Cathers chose "multi-caps" because they are most representative of the market, as they include small- to large-cap stocks. To trim the field further, Cathers included only retail funds that have been open to investors for at least three years, have over $25 million in assets, and are run by managements with consistent tenure. This analysis was followed by an extensive portfolio review of funds, using sister firm's Standard & Poor's stock ratings, as well as his own organization's qualitative and fundamental analysis skills. "I feel comfortable saying: 'OK, they had a bad year, but we think they're well worth taking a look at," Cathers said of the trio of funds profiled in this article. Here, then, are the three mutual funds that get especially high ratings based on their prospects from S&P Capital IQ, along with three of their top stock holdings:
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV