In today's Barron's, investors will find the annual Lipper/Barron's Fund Families Survey. This survey, a pretty comprehensive look at performance of mutual fund families across different asset classes and investment strategies.
This year take-aways:
- Growth worked: Those funds that performed best definitely had a bias towards growth.
- International exposure: Funds that bought stocks with substantial foreign operations fared better.
- Avoiding pitfalls: Underexposure to potential "minefields like major banks, housing companies, and retailers" helped boost performance.
- High grade: Those funds that owned highest-quality bonds performed best.
Waddell & Reed (NYSE: WDR) placed first in 2007 betting on companies participating in "major infrastructure plays throughout the world," like Fluor Corp. (NYSE: FLR) and Deere & Co. (NYSE: DE). Check out the Waddell & Reed Dividend Income Fund (WDVAX).
Eaton Vance (NYSE: EV) came in second in spite of not being as growth oriented as Janus. Eaton Vance still managed to climb high in the one-year rankings -- fifth in U.S. equity, third in world equity, and first in mixed-equity funds. See the Eaton Vance Dividend Builder (EVTMX).
Janus Capital Group (NYSE: JNS) came in third place with performance in 2007 in spite of key defections of star fund managers. Check out the Janus Fund (JANSX) and the Janus Fundamental Equity (JAEIX).
Just because these funds did well in 2007 doesn't mean they will continue to do well in 2008. Do your homework as growth funds have gotten walloped in early trading this year.
Zack Miller is the Managing Editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund.
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