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Is JPMorgan Large Cap Value Fund A (OLVAX) a Strong Mutual Fund Pick Right Now?
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Large Cap Value fund seekers should consider taking a look at JPMorgan Large Cap Value Fund A (OLVAX - Free Report) . OLVAX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
OLVAX is classified in the Large Cap Value segment by Zacks, which is an area full of possibilities. Investors interested in a stable income stream fund these mutual funds very appealing because they have a unique investing strategy. Large Cap Value funds invest in stocks with a market capitalization of $10 billion or more, but whose share prices do not reflect their intrinsic value. This tactic often leads to low P/E ratios and high dividend yields; however, these funds'high growth opportunity are often slowed, as large-cap securities are generally in stable industries with low to moderate growth prospects.
History of Fund/Manager
J.P. Morgan is based in Boston, MA, and is the manager of OLVAX. JPMorgan Large Cap Value Fund A made its debut in February of 1992, and since then, OLVAX has accumulated about $202.23 million in assets, per the most up-to-date date available. The fund is currently managed by Scott Blasdell who has been in charge of the fund since April of 2013.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. OLVAX has a 5-year annualized total return of 12.92% and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 10.83%, which places it in the top 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 16.01%, the standard deviation of OLVAX over the past three years is 26.37%. The fund's standard deviation over the past 5 years is 21.39% compared to the category average of 13.2%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. OLVAX has a 5-year beta of 1.26, which means it is likely to be more 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. OLVAX has generated a negative alpha over the past five years of -6.29, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Examining 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 principally on equities that are traded in the United States.
This fund is currently holding about 87.93% stock in stocks, which have an average market capitalization of $98.07 billion. The fund has the heaviest exposure to the following market sectors:
Finance
Industrial Cyclical
Non-Durable
With turnover at about 93%, this fund is making more trades in a given year than the average of comparable funds.
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, OLVAX is a load fund. It has an expense ratio of 0.93% compared to the category average of 1%. So, OLVAX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment needs to be at $50.
Bottom Line
Overall, JPMorgan Large Cap Value Fund A ( OLVAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Large Cap Value, make sure to go to www.zacks.com/funds/mutual-funds 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 JPMorgan Large Cap Value Fund A (OLVAX) a Strong Mutual Fund Pick Right Now?
Large Cap Value fund seekers should consider taking a look at JPMorgan Large Cap Value Fund A (OLVAX - Free Report) . OLVAX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
OLVAX is classified in the Large Cap Value segment by Zacks, which is an area full of possibilities. Investors interested in a stable income stream fund these mutual funds very appealing because they have a unique investing strategy. Large Cap Value funds invest in stocks with a market capitalization of $10 billion or more, but whose share prices do not reflect their intrinsic value. This tactic often leads to low P/E ratios and high dividend yields; however, these funds'high growth opportunity are often slowed, as large-cap securities are generally in stable industries with low to moderate growth prospects.
History of Fund/Manager
J.P. Morgan is based in Boston, MA, and is the manager of OLVAX. JPMorgan Large Cap Value Fund A made its debut in February of 1992, and since then, OLVAX has accumulated about $202.23 million in assets, per the most up-to-date date available. The fund is currently managed by Scott Blasdell who has been in charge of the fund since April of 2013.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. OLVAX has a 5-year annualized total return of 12.92% and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 10.83%, which places it in the top 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 16.01%, the standard deviation of OLVAX over the past three years is 26.37%. The fund's standard deviation over the past 5 years is 21.39% compared to the category average of 13.2%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. OLVAX has a 5-year beta of 1.26, which means it is likely to be more 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. OLVAX has generated a negative alpha over the past five years of -6.29, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Examining 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 principally on equities that are traded in the United States.
This fund is currently holding about 87.93% stock in stocks, which have an average market capitalization of $98.07 billion. The fund has the heaviest exposure to the following market sectors:
- Finance
- Industrial Cyclical
- Non-Durable
With turnover at about 93%, this fund is making more trades in a given year than the average of comparable funds.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, OLVAX is a load fund. It has an expense ratio of 0.93% compared to the category average of 1%. So, OLVAX is actually cheaper than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment needs to be at $50.
Bottom Line
Overall, JPMorgan Large Cap Value Fund A ( OLVAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Large Cap Value, make sure to go to www.zacks.com/funds/mutual-funds 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.