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Is Berkshire Focus Fund (BFOCX) a Strong Mutual Fund Pick Right Now?
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If investors are looking at the Large Cap Growth fund category, make sure to pass over Berkshire Focus Fund (BFOCX - Free Report) . BFOCX bears a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
BFOCX is classified in the Large Cap Growth segment by Zacks, an area full of possibilities. Companies are usually considered to be large-cap if their stock market valuation is more than $10 billion. Large Cap Growth mutual funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers.
History of Fund/Manager
BFOCX finds itself in the Berkshire family, based out of Mikwaukee, WI. Since Berkshire Focus Fund made its debut in July of 1997, BFOCX has garnered more than $286.19 million in assets. The fund is currently managed by Malcolm R. Fobes III who has been in charge of the fund since July of 1997.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 7.25%, and it sits in the bottom third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 30.53%, which places it in the middle third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 24.19%, the standard deviation of BFOCX over the past three years is 35.31%. The fund's standard deviation over the past 5 years is 36.1% compared to the category average of 24.25%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.63, which means it is hypothetically more volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. With a negative alpha of -11.4, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Investigating the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is largely on equities that are traded in the United States.
As of the last filing date, the mutual fund has 87.81% of its assets in stocks, which have an average market capitalization of $267.40 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Retail Trade
Finance
Turnover is 2481.8%, which means this fund makes more trades in a given year than the category average.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, BFOCX is a no load fund. It has an expense ratio of 1.96% compared to the category average of 1.26%. BFOCX is actually more expensive than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $5,000 and that each subsequent investment needs to be at $500.
Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.
Bottom Line
Overall, Berkshire Focus Fund ( BFOCX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and higher fees, Berkshire Focus Fund ( BFOCX ) looks like a somewhat weak choice for investors right now.
Don't stop here for your research on Large Cap Growth funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare BFOCX to its peers as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.
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Is Berkshire Focus Fund (BFOCX) a Strong Mutual Fund Pick Right Now?
If investors are looking at the Large Cap Growth fund category, make sure to pass over Berkshire Focus Fund (BFOCX - Free Report) . BFOCX bears a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
Objective
BFOCX is classified in the Large Cap Growth segment by Zacks, an area full of possibilities. Companies are usually considered to be large-cap if their stock market valuation is more than $10 billion. Large Cap Growth mutual funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers.
History of Fund/Manager
BFOCX finds itself in the Berkshire family, based out of Mikwaukee, WI. Since Berkshire Focus Fund made its debut in July of 1997, BFOCX has garnered more than $286.19 million in assets. The fund is currently managed by Malcolm R. Fobes III who has been in charge of the fund since July of 1997.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 7.25%, and it sits in the bottom third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 30.53%, which places it in the middle third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 24.19%, the standard deviation of BFOCX over the past three years is 35.31%. The fund's standard deviation over the past 5 years is 36.1% compared to the category average of 24.25%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.63, which means it is hypothetically more volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. With a negative alpha of -11.4, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Investigating the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is largely on equities that are traded in the United States.
As of the last filing date, the mutual fund has 87.81% of its assets in stocks, which have an average market capitalization of $267.40 billion. The fund has the heaviest exposure to the following market sectors:
Turnover is 2481.8%, which means this fund makes more trades in a given year than the category average.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, BFOCX is a no load fund. It has an expense ratio of 1.96% compared to the category average of 1.26%. BFOCX is actually more expensive than its peers when you consider factors like cost.
Investors should also note that the minimum initial investment for the product is $5,000 and that each subsequent investment needs to be at $500.
Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.
Bottom Line
Overall, Berkshire Focus Fund ( BFOCX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and higher fees, Berkshire Focus Fund ( BFOCX ) looks like a somewhat weak choice for investors right now.
Don't stop here for your research on Large Cap Growth funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare BFOCX to its peers as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.