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Is ClearBridge Aggressive Growth A (SHRAX) a Strong Mutual Fund Pick Right Now?
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Large Cap Growth fund seekers should not consider taking a look at ClearBridge Aggressive Growth A (SHRAX - Free Report) at this time. SHRAX possesses a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
SHRAX is part of the Large Cap Growth section, and this segment boasts an array of other possible options. Large Cap Growth mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. Companies are usually considered to be large-cap if their market capitalization is over $10 billion.
History of Fund/Manager
Franklin Templeton is based in San Mateo, CA, and is the manager of SHRAX. The ClearBridge Aggressive Growth A made its debut in October of 1983 and SHRAX has managed to accumulate roughly $5.72 billion in assets, as of the most recently available information. Richard Freeman is the fund's current manager and has held that role since October of 1983.
Performance
Investors naturally seek funds with strong performance. SHRAX has a 5-year annualized total return of 10.4% and is in the bottom third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 9.07%, which places it in the bottom 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 15.66%, the standard deviation of SHRAX over the past three years is 21.62%. The fund's standard deviation over the past 5 years is 18.14% compared to the category average of 12.9%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 1.07, so investors should note that it is hypothetically more volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. SHRAX has generated a negative alpha over the past five years of -6.21, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Exploring 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 largely on equities that are traded in the United States.
This fund is currently holding about 80.32% stock in stocks, with an average market capitalization of $94.92 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Health
Finance
Non-Durable
With turnover at about 0%, this fund is making 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, SHRAX is a load fund. It has an expense ratio of 1.11% compared to the category average of 1.02%. From a cost perspective, SHRAX is actually more expensive than its peers.
This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $50.
Bottom Line
Overall, ClearBridge Aggressive Growth A ( SHRAX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and higher fees, this fund looks like a somewhat weak choice for investors right now.
This could just be the start of your research on SHRAXin the Large Cap Growth category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.
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Is ClearBridge Aggressive Growth A (SHRAX) a Strong Mutual Fund Pick Right Now?
Large Cap Growth fund seekers should not consider taking a look at ClearBridge Aggressive Growth A (SHRAX - Free Report) at this time. SHRAX possesses a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
SHRAX is part of the Large Cap Growth section, and this segment boasts an array of other possible options. Large Cap Growth mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. Companies are usually considered to be large-cap if their market capitalization is over $10 billion.
History of Fund/Manager
Franklin Templeton is based in San Mateo, CA, and is the manager of SHRAX. The ClearBridge Aggressive Growth A made its debut in October of 1983 and SHRAX has managed to accumulate roughly $5.72 billion in assets, as of the most recently available information. Richard Freeman is the fund's current manager and has held that role since October of 1983.
Performance
Investors naturally seek funds with strong performance. SHRAX has a 5-year annualized total return of 10.4% and is in the bottom third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 9.07%, which places it in the bottom 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 15.66%, the standard deviation of SHRAX over the past three years is 21.62%. The fund's standard deviation over the past 5 years is 18.14% compared to the category average of 12.9%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 1.07, so investors should note that it is hypothetically more volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. SHRAX has generated a negative alpha over the past five years of -6.21, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Exploring 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 largely on equities that are traded in the United States.
This fund is currently holding about 80.32% stock in stocks, with an average market capitalization of $94.92 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Health
- Finance
- Non-Durable
With turnover at about 0%, this fund is making 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, SHRAX is a load fund. It has an expense ratio of 1.11% compared to the category average of 1.02%. From a cost perspective, SHRAX is actually more expensive than its peers.
This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $50.
Bottom Line
Overall, ClearBridge Aggressive Growth A ( SHRAX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and higher fees, this fund looks like a somewhat weak choice for investors right now.
This could just be the start of your research on SHRAXin the Large Cap Growth category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. For analysis of the rest of your portfolio, make sure to visit Zacks.com for our full suite of tools which will help you investigate all of your stocks and funds in one place.