TheStreet.com Ratings initiated coverage of 33 open-end mutual funds that accrued a track record of three years of risk and performance data by the end of June.

One of the funds that opened for business in June, 2005, received our top rating level of Excellent.

The

Royce Global Select Fund

(RSFTX)

starts off with the highest possible rating of A+. The fund targets mid-, small-, and micro-cap stocks considered to be undervalued. Its allocation is 17.0% mining, 17.0% banks, 6.2% machinery, 5.8% oil and gas services, 5.7% oil and gas, and 5.6% iron and steel.

Three noteworthy holdings that have performed well are

UltraShort Consumer Services ProShares

(SCC) - Get Report

,

UltraShort Industrials ProShares

(SIJ) - Get Report

and

UltraShort Real Estate ProShares

(SRS) - Get Report

. All of these are exchange-traded funds that sell short their underlying indexes with 200% leverage.

Two more funds qualified for our recommended list with ratings of B+.

The first B+ fund is the

Aston River Road Small Cap Value Fund

(ARSVX) - Get Report

. As with the previous fund, this fund invests mostly in undervalued small caps. 94.1% of the fund is comprised of U.S. stocks with 2.8% Mexico, 2.1% Canada, and 1.0% Israel rounding out the mix.

Some of the largest holdings include

Aptragroup

(ATR) - Get Report

,

Encore Acquisition

(EAC)

and

Brink's

(BCO) - Get Report

.

The second recommended list fund is

GMO World Opportunities Equity Allocation Fund

(GWOAX) - Get Report

. This is a fund of funds that splits its investments between other GMO mutual funds including U.S. Equity, International Equity, Fixed Income and Alternative Asset Opportunity funds.

Research Methodology

TheStreet.com Ratings condenses the available fund performance and risk data into a single composite opinion of each fund's risk-adjusted performance. This allows the unbiased identification of those funds that have historically done well and those that have underperformed the market. While there is no guarantee of future performance, these Investment Ratings provide a solid framework for making informed, timely investment decisions.

The funds listed below have either reached their three year anniversary or are additional share classes of existing funds for which the fund companies have submitted three years of pro-forma results.

Funds rated A or B are considered "Buy" rated based on a track record of higher than average risk-adjusted performance. Funds at the C level are rated as "Hold," while underperformers at the D and E levels our model ranks as "Sell."

For an explanation of our ratings,

click here

.

Kevin Baker became the senior financial analyst for TSC Ratings upon the August 2006 acquisition of Weiss Ratings by TheStreet.com, covering mutual funds. He joined the Weiss Group in 1997 as a banking and brokerage analyst. In 1999, he created the Weiss Group's first ratings to gauge the level of risk in U.S. equities. Baker received a B.S. degree in management from Rensselaer Polytechnic Institute and an M.B.A. with a finance specialization from Nova Southeastern University.