May's Top Hybrid Fund Finds Undervalued Stocks

The Greenspring Fund also seeks out special-situation bonds.
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The top hybrid funds for the month of May utilized various strategies to generate their monthly returns.

The

Greenspring Fund

(GRSPX) - Get Report

is based on a strategy of finding undervalued stocks and special situation bonds.

This type of strategy may be worth keeping in mind if markets continue to slide and more specific strategies, such as value investing and special situations, which have more to do with a misalignment of prices than valuation of securities, come into vogue.

The value approach, if implemented correctly, should avoid paying too high a price, and is long term in nature. This combined with special situations, which generally offer the ability to profit short term from the misalignment of security prices, can complement each other -- a very

Warren Buffett

-like combination.

The remainder of the top returning funds employed more generic strategies, such as a focus on small to medium domestic growth stocks combined with an international exposure as in the case of the

Seligman Asset Allocation Aggressive Growth Fund

(STHAX)

. STHAX is actually a fund of funds made up of other Seligman funds.

The other fund of interest was the

CGM Mutual Fund

(LOMMX) - Get Report

, which invests 80% of its assets under management in lower quality convertible debt.

MFID

NAME, TICKER & TSC GRADE

OBJECTIVE

MAY 08 RETN %

RETURN_YTD_MKT

RETURN_1YR_MKT

RETURN_3YR_MKT

MONTHEND_PD

PD_6MO_AVG

25540

Morgan Stanley Eastern Europe (RNE) C+

Non-US Equity

15.39

-1.05

35.43

44.39

-5.89

-6.57

3767

Central Europe & Russia Fund (CEE) B

Non-US Equity

14.88

0.09

36.21

43.28

-7.47

-9.16

142102

Cohen&Steers Worldwide Realty Inc (RWF) D-

Global Equity

14.09

11.80

-18.24

8.75

3.17

-0.50

8093

Latin American Discovery Fund (LDF) C+

Non-US Equity

14.05

13.22

40.66

57.78

-5.57

-5.04

3721

Royce Focus Trust (FUND) B+

Growth - Domestic

13.76

10.26

1.68

22.26

2.96

-0.70

161413

Claymore Raymond James SB1 Ety Fd (RYJ) E+

Equity Income

13.20

8.55

4.25

N/A

-3.30

-9.17

3661

Castle Convertible Fund (CVF) B

Growth & Income

11.90

8.55

6.29

12.69

-3.58

-8.84

3796

Mexico Fund (MXF) A

Non-US Equity

10.31

7.32

4.71

30.81

-15.10

-15.43

10387

Royce Micro-Cap Trust (RMT) C

Growth - Domestic

10.26

6.75

-13.91

7.71

-1.51

-7.67

19666

Templeton Russia&East European Fund (TRF) C+

Non-US Equity

10.19

-12.93

9.09

37.89

-1.15

2.09

3692

Royce Value Trust (RVT) C

Growth - Domestic

10.08

2.28

-8.84

8.33

-0.43

-5.42

8076

Latin America Equity Fund (LAQ) B+

Non-US Equity

10.01

15.22

39.33

54.82

-9.59

-9.97

3857

Turkish Investment Fund (TKF) C

Non-US Equity

9.87

-14.61

7.02

21.03

8.42

5.67

96096

LMP Real Estate Income Fund Inc (RIT) C

Growth & Income

9.82

28.63

-17.57

12.67

6.22

-2.63

3885

Japan Smaller Cap Fund Inc. (JOF) E

Non-US Equity

9.49

6.73

-13.65

4.07

3.36

-2.47

117370

PIMCO Floating Rate Income Fund (PFL) C-

Loan Participation

8.91

8.52

-14.10

6.19

5.36

-0.02

8094

Mexico Equity & Income Fund (MXE) C+

Non-US Equity

8.75

13.76

1.95

39.08

-13.47

-14.75

89696

BlackRock VA Muni Bond Trust (BHV) B-

Municipal Single State

8.47

8.75

5.80

9.52

21.52

16.70

130734

Clough Global Allocation Fund (GLV) C+

Growth & Income

8.44

3.73

15.98

9.05

-8.82

-9.17

96223

Cohen&Steers Premium Income Realty (RPF) C+

Growth & Income

8.28

30.37

-5.91

14.15

7.60

1.79

Sam Patel, CFA, is the manager of mutual fund research for the TheStreet.com Ratings.

In keeping with TSC's Investment Policy, employees of TheStreet.com Ratings with access to pre-publication ratings data must pre-clear any potential trade through the legal department, and are prohibited from trading any security that is the subject of an unpublished rating revision until the second business day after the rating is published.

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