Standard & Poor's released its latest scorecard measuring the consistency of top mutual fund performers over three and five consecutive years. The semiannual scorecard also measures performance persistence, corrected for survivorship bias.
As of December 31, 2005, only 15.5% of large-cap funds, 10.2% of mid-cap funds, and 9.8% of small-cap funds maintained a top-quartile ranking over three consecutive 12-month periods. The data on the scorecard also show that 32.2% of large-cap, 27.3% of mid-cap, and 25.7% of small-cap funds consistently maintained a top half ranking over the same time period.
"Very few funds manage to maintain a consistent top quartile ranking for long periods of time," says Srikant Dash, Index Strategist at Standard & Poor's. "Our study shows that over five consecutive years, only 1.9% of large-cap funds, 3.1% of small-cap funds, and no mid-cap funds have maintaineda top-quartile ranking."
The scorecard also evaluates the characteristics of those few funds that persistently maintain a top half or top quartile ranking. Standard & Poor's data show that consistent performers have longer manager tenure at their funds, lower expenses relative to their peers, and have managed to minimize or avoid losses during the bear market relative to their peers.
"When we viewed consecutive 12-month performance or non-overlapping cumulative periods, consistent top performers all had experienced management teams with tenure higher than their peers," says Rosanne Pane, Mutual Fund Strategist at Standard & Poor's. "Experienced management teams can successfully maneuver their funds through a variety of market environments."
Below is a list of ten funds in each equity fund category that showed persistent performance over five consecutive 12-month periods. The complete semiannual scorecard is available at .
LARGE-CAP FUNDS
| Fund Name |
Five-Year Return (Annualized %) |
Open / Closed to New Investors |
| Hotchkis & Wiley Large Cap Value Fund/I (HWLIX) |
13.1 |
Open |
| Dodge & Cox Stock Fund (DODGX) |
11.0 |
Closed |
| RiverSource Diversified Equity Income Fund/A (INDZX) |
9.8 |
Open |
| DFA U.S. Large Cap Value Portfolio III (DFUVX) |
9.3 |
Open |
| American Beacon Large Cap Value/AMR (AAGAX) |
9.2 |
Closed |
| LWAS/DFA U.S. High Book-to-Market Portfolio (DFBMX) |
9.1 |
Open |
| Target Portfolio Trust:Large Cap Value (TALVX) |
8.6 |
Open |
| Oppenheimer Value/A (CGRWX) |
7.8 |
Open |
| Cambiar Opportunity Fund (CAMOX) |
7.5 |
Open |
| Gabelli Equity Income/AAA (GABEX) |
7.1 |
Open |
MID-CAP FUNDS
| Fund Name |
Five-Year Return (Annualized %) |
Open / Closed to New Investors |
| Hotchkis & Wiley Mid-Cap Value Fund/I (HWMIX) |
17.7 |
Closed |
| Security:Mid Cap Value Fund/A (SEVAX) |
16.1 |
Open |
| Janus Mid Cap Value Fund/Investor (JMCVX) |
13.8 |
Open |
| Vanguard Selected Value (VASVX) |
13.3 |
Open |
| Vanguard Strategic Equity (VSEQX) |
11.8 |
Open |
| BlackRock Mid-Cap Value Portfolio/Inv A (BMCAX) |
11.5 |
Open |
| SEI Institutional Managed Trust Mid-Cap Fund/A (SEMCX) |
11.5 |
Open |
| Robeco Boston Partners Mid Cap Value/Inst (BPMIX) |
11.1 |
Open |
| Westcore Mid-Cap Value Fund (WTMCX) |
10.9 |
Open |
| Rochdale Mid/Small Value Portfolio (RIMKX) |
10.9 |
Open |
SMALL-CAP FUNDS
| Fund Name |
Five-Year Return (Annualized %) |
Open / Closed to New Investors |
| Hotchkis & Wiley Small Cap Value Fund/I (HWSIX) |
25.0 |
Closed |
| Perritt MicroCap Opportunities (PRCGX) |
24.2 |
Open |
| RS Partners Fund (RSPFX) |
23.6 |
Closed |
| n/i Small Cap Value Fund (NISVX) |
21.1 |
Closed |
| Berwyn Fund (BERWX) |
19.9 |
Open |
| DFA U.S. Small Cap Value Portfolio/II (DFAVX) |
19.4 |
Open |
| DFA U.S. Small Cap Value Portfolio (DFSVX) |
19.1 |
Open |
| Pacific Capital Small Cap/Y (PSCYX) |
19.1 |
Open |
| Robeco Boston Partners Small Cap Value II/Inv (BPSCX) |
18.9 |
Closed |
| MainStay Funds Small Cap Opportunity/I (MOPIX) |
18.8 |
Open |
Contact Bob Keane with questions or comments at: bkeane@investmentadvisor.com.
