Worthy Funds That Are Finding Value in Growth
A recent growth tilt has helped set these value-oriented offerings apart from the pack.
Coming out of a grueling recession, these past two years have presented real buying opportunities in stocks that are increasing at a faster rate than the sluggish economy. For example, growth firms such as Netflix (NFLX), Chipotle Mexican Grill (CMG), and Apple (AAPL) have been on a tear.
And given that the state of the economy is uncertain, fund managers--particularly those of large-cap funds--have also been on the prowl for reasonably priced growth opportunities, with a particular emphasis on mega-cap, high-quality firms.
To help identify solid bargain-hunting funds whose managers have turned up opportunities among companies with decent growth prospects, we turned to the Premium Fund Screener. We started by screening for funds in the large-value category whose most recent portfolios tilted them into the "blend" area of the Morningstar Style Box. (Funds' category and style-box assignments can differ from time to time; the former are based on the fund's style-box placement during the past three years, whereas a fund's current style-box position is simply a snapshot of its most recent portfolio.) On the fees front, we called up no-load funds with expenses below the category average.
Esther Pak does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.