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Is Berkshire Focus Fund (BFOCX) a Strong Mutual Fund Pick Right Now?
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Having trouble finding a Large Cap Growth fund? Well, Berkshire Focus Fund (BFOCX - Free Report) would not be a good potential starting point right now. BFOCX possesses a Zacks Mutual Fund Rank of 5 (Strong 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. The Berkshire Focus Fund made its debut in July of 1997 and BFOCX has managed to accumulate roughly $276.86 million in assets, as of the most recently available information. The fund's current manager, Malcolm R. Fobes III, has been in charge of the fund since July of 1997.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 9.63%, and it sits 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 -5.83%, 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. Over the past three years, BFOCX's standard deviation comes in at 38.15%, compared to the category average of 25.51%. The standard deviation of the fund over the past 5 years is 35.32% compared to the category average of 25.18%. 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 1.4, which means 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. The fund has produced a negative alpha over the past 5 years of -4.78, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key 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 1.25%. So, BFOCX is actually more expensive than its peers from a cost perspective.
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, this fund looks like a somewhat weak choice for investors right now.
Don't stop here for your research on Large Cap Growth funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare BFOCX to its peers as well for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.
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Is Berkshire Focus Fund (BFOCX) a Strong Mutual Fund Pick Right Now?
Having trouble finding a Large Cap Growth fund? Well, Berkshire Focus Fund (BFOCX - Free Report) would not be a good potential starting point right now. BFOCX possesses a Zacks Mutual Fund Rank of 5 (Strong 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. The Berkshire Focus Fund made its debut in July of 1997 and BFOCX has managed to accumulate roughly $276.86 million in assets, as of the most recently available information. The fund's current manager, Malcolm R. Fobes III, has been in charge of the fund since July of 1997.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 9.63%, and it sits 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 -5.83%, 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. Over the past three years, BFOCX's standard deviation comes in at 38.15%, compared to the category average of 25.51%. The standard deviation of the fund over the past 5 years is 35.32% compared to the category average of 25.18%. 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 1.4, which means 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. The fund has produced a negative alpha over the past 5 years of -4.78, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key 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 1.25%. So, BFOCX is actually more expensive than its peers from a cost perspective.
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, this fund looks like a somewhat weak choice for investors right now.
Don't stop here for your research on Large Cap Growth funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare BFOCX to its peers as well for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.