Some Mutual Funds Deserve a Second Chance
We've changed our opinions on these mutual funds.
Like everyone else, we sometimes drink the Kool-Aid here in Chicago. There will never be a football team as talented and charismatic as the '85 Bears (except maybe the '06 Bears). Oprah is God. Marshall Field's was way better than Macy's.
But when it comes to mutual funds, we Morningstar analysts are much more skeptical. Before we recommend a fund, we look for time-tested investment strategies, proven portfolio managers and analysts, low costs, good returns, and performance behavior that we can understand. New portfolio manager? We're cautious. New-fangled investment objective? Forget it. Rationalizing weak performance? Keep trying.
Sure, we have our favorites, and we'll stick by them through their ups and downs. But for the most part, funds need to be something special before earning a ringing endorsement. Our skeptic's eye, however, can soften, and there are a number of funds we've changed our opinion on--both to the negative and the positive. Following are a few that we've warmed to. If you haven't checked them out in some time, you'll want to give them a second look.
Bridget B. Hughes does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.