Fidelity Value Portfolio Leads Large Funds

BOSTON ( TheStreet) -- The Fidelity Value Fund ( FDVLX) was the best-performing portfolio in the third quarter among funds with more than $5 billion in assets.

The $8 billion fund, run by Boston-based Fidelity Investments, returned 27.4%, beating the 24% advance of the Russell Midcap Value Index. The $6.3 billion DFA U.S. Small Cap Value Portfolio ( DFSVX) ranked No. 2, rising 26.8%. Our list excludes index and sector funds.

Shares of medium-sized companies outperformed large-cap stocks during the third quarter. The S&P 500 Index and Dow Jones Industrial Average each gained 16%.

Top Actively Managed Funds in Third Quarter
Fund (Ticker) Rating
Assets
Return
Fidelity Value Fund (FDVLX) C-
8.03
27.41%
DFA US Small Cap Value Portfolio (DFSVX) C-
6.31
26.83%
Fidelity Mid-Cap Stock Fund (FMCSX) C
6.59
25.99%
Templeton Foreign Fund (TEMFX) B-
6.07
25.90%
Dodge & Cox International Stock Fund (DODFX) B
27.90
24.39%
DFA International Small Cap Value Portfolio (DISVX) B
7.09
24.38%
T Rowe Price Mid-Cap Value Fund (TRMCX) B+
6.38
22.36%
Fidelity Dividend Growth Fund (FDGFX) C+
7.14
22.21%
DFA US Large Cap Value Portfolio (DFLVX) D+
6.20
21.95%
Harbor International Fund (HAINX) B
22.93
21.91%
Source: TheStreet.com Ratings & Bloomberg
Note: Excludes index and sector funds

The Fidelity Value Fund, managed by Richard Fentin, was upgraded to C-minus, or "hold," based on its performance through Aug. 31 after spending 11 months at "sell."

Fentin targets companies that are likely to increase earnings and assets whose shares are trading at prices he considers cheap. Most of the portfolio's holdings are based in the U.S. More than 11% of the fund is invested in banks, followed by 6.1% in oil and gas stocks and 5.8% in electronics companies. No individual holding accounts for more than 1.5% of assets.

Seven of the fund's holdings more than doubled during the third quarter, including Brunswick ( BC), ACCO Brands ( ABD), Avis Budget Group ( CAR), Macquarie Infrastructure ( MIC), Oshkosh ( OSK), Solutia ( SOA) and OfficeMax ( OMX).

For more information on mutual fund ratings, check out our Top-Rated Mutual Funds page.

-- Reported by Kevin Baker in Jupiter, Fla.

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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.