Large-Cap Growth's Shrinking Feeling

With the Red Sox at last having retired their curse in 2004, the pressure to break out has settled on another group of longtime underperformers: big-cap growth funds.

The category has done poorly ever since tech finished its record run in early 2000. These funds, which invest in what they see as fast-growing companies with market capitalizations above $10 billion, have managed to shrink substantially over the last five years, returning a negative 6.25% annually on average. That makes them the third-worst-performing group out of the 20 categories tracked by fund watcher Morningstar.

But of course, long marches in the wilderness are often the prelude to strong runs in the black, and fans of the category feel certain that next year will bear them out. ...