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ANOTHER YEAR OF LARGE-CAP VALUE OUTPERFORMANCE IN 2013?

February 5, 2013

 

The S&P Capital IQ fund research team takes a look at a handful of five-star large-cap value mutual funds with at least $500 million in assets under management, a manager or management team that has been at the helm for at least seven years or more and positive rankings in the performance risk and cost categories. 
-S&P Capital IQ

After three years of growth stocks beating value shares, value stocks appear to have turned the tide, having outperformed growth in 2012.According to Lipper data through the one-year period ended January 31, large-cap value funds returned 17.0%, significantly ahead of large-cap growth funds, which rose 13.3%. The S&P 500 total return during this time was 16.8%. We believe this outperformance was largely driven by value funds' heavy weightings in the financials sector. Last year, the financials sector was the best-performing sector in the S&P 500 , returning 24.2% on a price-only basis. While past performance is no guarantee of future results, we thought it would be timely to look at a few domestic large-cap value funds. With that in mind, we used the Funds Screener on MarketScope Advisor and searched for domestic large-cap value funds that are ranked five star by S&P Capital IQ with at least $500 million in assets, manager tenure of seven years or more, and positive rankings on all three S&P Capital IQ ranking factors-- performance, risk and cost. We excluded institutional classes, since our focus is on the individual mutual fund investor, and we searched only for funds open to new investors. We think the following funds may be worth further investigation by investors who would like exposure to large-cap value funds.


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