Having trouble finding a Mid Cap Blend fund? Matthew 25 Fund (MXXVX - Free Report) is a possible starting point. MXXVX holds a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
MXXVX is classified in the Mid Cap Blend category by Zacks, an area full of possibilities. Mid Cap Blend mutual funds usually feature a portfolio with stocks of various styles and sizes, allowing for diversification within a strategy that focuses on companies in the $2 billion to $10 billion market cap range. A mid-cap blend fund provides exposure to exciting growth potential, income opportunities, and value picks, while also attempting some level of stability through diversification.
History of Fund/Manager
MXXVX finds itself in the Matthew 25 family, based out of Jenkintown, PA. Matthew 25 Fund made its debut in October of 1995, and since then, MXXVX has accumulated about $391.28 million in assets, per the most up-to-date date available. The fund's current manager, Mark Mulholland, has been in charge of the fund since July of 1996.
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 14.87%, and is in the top 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 13.36%, 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. Over the past three years, MXXVX's standard deviation comes in at 15.2%, compared to the category average of 11.72%. Over the past 5 years, the standard deviation of the fund is 13.42% compared to the category average of 11.48%. This makes the fund more volatile than its peers over the past half-decade.
It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment. MXXVX lost 56.92% in the most recent bear market and underperformed its peer group by 5.76%. This could mean that the fund is a worse choice than comparable funds during a bear market.
Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. MXXVX has a 5-year beta of 1.12, which means it is likely to be more volatile than the market average. 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 -2.3, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, MXXVX is a no load fund. It has an expense ratio of 1.10% compared to the category average of 1.11%. Looking at the fund from a cost perspective, MXXVX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $10,000; each subsequent investment needs to be at least $100.
Overall, Matthew 25 Fund has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Matthew 25 Fund looks like a somewhat average choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mid Cap Blend, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.