Large Cap Growth fund seekers may want to consider taking a look at Berkshire Focus Fund (BFOCX Quick QuoteBFOCX - Free Report) . BFOCX possesses a Zacks Mutual Fund Rank of 3 (Hold), 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

BFOCX is a part of the Berkshire family of funds, a company based out of Mikwaukee, WI. Berkshire Focus Fund debuted in July of 1997. Since then, BFOCX has accumulated assets of about $301.84 million, according to the most recently available information. Malcolm R. Fobes III is the fund's current manager and has held that role since July of 1997.

Performance

Investors naturally seek funds with strong performance. BFOCX has a 5-year annualized total return of 1.17%, and is in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 45.43%, which places it in the top 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 33.16% compared to the category average of 21.21%. Looking at the past 5 years, the fund's standard deviation is 34.99% compared to the category average of 23.2%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

The fund has a 5-year beta of 1.65, so investors should note that it is hypothetically more volatile than the market at large. 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 negative alpha of -13.92, 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 primarily on equities that are traded in the United States.

Right now, 79.63% of this mutual fund's holdings are stocks, which have an average market capitalization of $387.52 billion. The fund has the heaviest exposure to the following market sectors:

• Technology
• Retail Trade
• Other

Turnover is about 2358.8%, so those in charge of the fund make more trades per year than the comparable average.

Expenses

For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, BFOCX is a no load fund and it has an expense ratio of 1.95%.

While the minimum initial investment for the product is $5,000, investors should also note that each subsequent investment needs to be at least $500.

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

Bottom Line

With a rank of 'hold' we aren't getting a good signal one way or another on BFOCX. That is why it might be a good idea to consider other items, such as the fund's expense ratio of 1.95%, and how this compares to other potential options being considered for investment. If cheaper, it might make a decent choice, but a more expensive fund might be worth avoiding. Just make sure to pay attention to its rank in case it shifts in the near future.

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