Funds That Outperform When the Market Is Hot

In sports parlance, the 2006 U.S. stock market would be described as a "second-half game." The stock market started the year with generally promising performance, then encountered an unsettling downdraft in the spring. But by midyear it was back on its feet and headed toward a strong finish.

But there were also laggards that couldn't put together competitive performances even with the benefit of a strong stock market tailwind.

In an effort to identify the mutual funds that tend to have the wind at their backs during periods of market strength, TheStreet.com Ratings compiled a list of leaders and laggards during 2006's second half. The list excludes leveraged and "inverse" funds as well as those with minimum initial investments of more than $10,000. To attain an even comparison of diversified equity funds, specific sector funds were also excluded. ...