8 Recent Changes in Analyst Ratings
A host of factors drove these upgrades and downgrades.
A manager departure or addition can often lead to a change in a fund's Morningstar Analyst Rating. But there are plenty of other reasons why a rating can move up or down, as the list below of recent ratings adjustments at prominent funds indicates.
Davis NY Venture (NYVTX), Selected American Shares (SLADX), Clipper (CFIMX): All downgraded to Bronze
The surprising departure of Ken Feinberg at the end of 2013 prompted a re-evaluation. Feinberg comanaged the first two funds with Chris Davis for more than 15 years, and Clipper for eight years. The funds struggled mightily in 2008's sharp downturn as financials--the firm's specialty--were hammered, and they have since posted spotty relative performance. However, each fund had earned an Analyst Rating of Gold based on our thesis that Davis and Feinberg--two seasoned, bottom-up, long-term-oriented investors--could again generate strong returns. Davis remains on board along with a number of veteran analysts (and new comanager Danton Goei), so the fund's prospects are still solid. But our confidence level has taken a hit.
Greg Carlson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.