The nation's 10 largest mutual funds, all of which invest in large-cap stocks, have been investing in mid- and small-cap stocks to cushion losses due to poor market conditions, Standard & Poor's has found.

While not abandoning their large-cap mandates, each of these funds has expanded their holdings in smaller stocks, according to S&P.

These holdings have only cushioned these funds' losses, as all 10 of the nation's leading mutual funds have suffered losses in the first half of this year, ranging from a 0.9% loss for Fidelity Contrafund to a 16.6% loss for Janus Fund.

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