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Is Loomis Sayles Growth Fund A (LGRRX) a Strong Mutual Fund Pick Right Now?
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On the lookout for a Mutual Fund Equity Report fund? Starting with Loomis Sayles Growth Fund A (LGRRX - Free Report) should not be a possibility at this time. LGRRX carries a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Natixis Funds is based in Kansas City, MO, and is the manager of LGRRX. Since Loomis Sayles Growth Fund A made its debut in May of 1991, LGRRX has garnered more than $1.56 billion in assets. The fund's current manager, Aziz Hamzaogullari, has been in charge of the fund since May of 2010.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 17.16%, and it sits in the middle third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 17.53%, which places it in the middle third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 15.69%, the standard deviation of LGRRX over the past three years is 16.97%. Over the past 5 years, the standard deviation of the fund is 15.83% compared to the category average of 14%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.95, the fund is likely to be less volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. With a positive alpha of 2.52, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Investigating the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is mostly on equities that are traded in the United States.
Right now, 88.66% of this mutual fund's holdings are stocks, with an average market capitalization of $593.17 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Industrial Cyclical
Turnover is 9%, which means this fund makes fewer trades than its comparable peers.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, LGRRX is a load fund. It has an expense ratio of 0.89% compared to the category average of 0.99%. From a cost perspective, LGRRX is actually cheaper than its peers.
This fund requires a minimum initial investment of $2,500, and each subsequent investment should be at least $50.
Bottom Line
Overall, Loomis Sayles Growth Fund A ( LGRRX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
For additional information on the Mutual Fund Equity Report area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into LGRRX too for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.
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Is Loomis Sayles Growth Fund A (LGRRX) a Strong Mutual Fund Pick Right Now?
On the lookout for a Mutual Fund Equity Report fund? Starting with Loomis Sayles Growth Fund A (LGRRX - Free Report) should not be a possibility at this time. LGRRX carries a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Natixis Funds is based in Kansas City, MO, and is the manager of LGRRX. Since Loomis Sayles Growth Fund A made its debut in May of 1991, LGRRX has garnered more than $1.56 billion in assets. The fund's current manager, Aziz Hamzaogullari, has been in charge of the fund since May of 2010.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 17.16%, and it sits in the middle third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 17.53%, which places it in the middle third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 15.69%, the standard deviation of LGRRX over the past three years is 16.97%. Over the past 5 years, the standard deviation of the fund is 15.83% compared to the category average of 14%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.95, the fund is likely to be less volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. With a positive alpha of 2.52, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Investigating the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is mostly on equities that are traded in the United States.
Right now, 88.66% of this mutual fund's holdings are stocks, with an average market capitalization of $593.17 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Industrial Cyclical
Turnover is 9%, which means this fund makes fewer trades than its comparable peers.Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, LGRRX is a load fund. It has an expense ratio of 0.89% compared to the category average of 0.99%. From a cost perspective, LGRRX is actually cheaper than its peers.
This fund requires a minimum initial investment of $2,500, and each subsequent investment should be at least $50.
Bottom Line
Overall, Loomis Sayles Growth Fund A ( LGRRX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
For additional information on the Mutual Fund Equity Report area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into LGRRX too for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.