There are plenty of choices in the Large Cap Growth category, but where should you start your research? Well, one fund that may not be worth investigating is Berkshire Focus Fund (BFOCX Quick QuoteBFOCX - Free Report) . BFOCX has a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.

Objective

We classify BFOCX in the Large Cap Growth category, an area rife with potential choices. Large Cap Growth funds invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. To be considered large-cap, companies must have a market cap over $10 billion.

History of Fund/Manager

Berkshire is based in Mikwaukee, WI, and is the manager of BFOCX. Since Berkshire Focus Fund made its debut in July of 1997, BFOCX has garnered more than $247.47 million in assets. The fund is currently managed by Malcolm R. Fobes III who has been in charge of the fund since July of 1997.

Performance

Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 6.49%, and it sits in the bottom 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 -12.62%, which places it in the bottom third during this time-frame.

It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.

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. BFOCX's standard deviation over the past three years is 37.67% compared to the category average of 25.79%. Over the past 5 years, the standard deviation of the fund is 34.33% compared to the category average of 25.17%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

Investors should note that the fund has a 5-year beta of 1.37, so it is likely going to be 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. With a negative alpha of -8.13, managers in this portfolio find it difficult to pick 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 principally on equities that are traded in the United States.

Right now, 76.72% of this mutual fund's holdings are stocks, which have an average market capitalization of $335.67 billion. The fund has the heaviest exposure to the following market sectors:

• Technology
• Finance
• Retail Trade

Turnover is 1613.9%, which means this fund makes 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, BFOCX is a no load fund. It has an expense ratio of 1.97% compared to the category average of 1.24%. Looking at the fund from a cost perspective, BFOCX is actually more expensive than its peers.

Investors should also note that the minimum initial investment for the product is $5,000 and that each subsequent investment needs to be at $500

Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.

Bottom Line

Overall, Berkshire Focus Fund ( BFOCX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and higher fees, Berkshire Focus Fund ( BFOCX ) looks like a somewhat weak choice for investors right now.

Your research on the Large Cap Growth segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer 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.