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Is DoubleLine Shiller Enhanced CAPE N (DSENX) a Strong Mutual Fund Pick Right Now?
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On the lookout for a Large Cap Blend fund? Starting with DoubleLine Shiller Enhanced CAPE N (DSENX - Free Report) should not be a possibility at this time. DSENX bears a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We note that DSENX is a Large Cap Blend option, an area loaded with different options. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a " buy and hold " mindset. Additionally, blended funds mix large, more established firms into their portfolios, giving investors exposure to value and growth opportunities.
History of Fund/Manager
DSENX is a part of the Double Line family of funds, a company based out of Los Angeles, CA. DoubleLine Shiller Enhanced CAPE N debuted in October of 2013. Since then, DSENX has accumulated assets of about $1.63 billion, according to the most recently available information. Jeffrey J. Sherman is the fund's current manager and has held that role since October of 2013.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. DSENX has a 5-year annualized total return of 6.45% and it sits 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 1.25%, which places it in the middle 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 14.28%, the standard deviation of DSENX over the past three years is 18.75%. The standard deviation of the fund over the past 5 years is 16.46% compared to the category average of 12.93%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment.
Nevertheless, with a 5-year beta of 1.16, the fund is likely to be more volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. DSENX's 5-year performance has produced a negative alpha of -0.81, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, DSENX is a no load fund. It has an expense ratio of 0.79% compared to the category average of 1%. DSENX is actually cheaper than its peers when you consider factors like cost.
This fund requires a minimum initial investment of $2,000, and each subsequent investment should be at least $100.
Bottom Line
Overall, DoubleLine Shiller Enhanced CAPE N ( DSENX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
Your research on the Large Cap Blend 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. 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 DoubleLine Shiller Enhanced CAPE N (DSENX) a Strong Mutual Fund Pick Right Now?
On the lookout for a Large Cap Blend fund? Starting with DoubleLine Shiller Enhanced CAPE N (DSENX - Free Report) should not be a possibility at this time. DSENX bears a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We note that DSENX is a Large Cap Blend option, an area loaded with different options. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a " buy and hold " mindset. Additionally, blended funds mix large, more established firms into their portfolios, giving investors exposure to value and growth opportunities.
History of Fund/Manager
DSENX is a part of the Double Line family of funds, a company based out of Los Angeles, CA. DoubleLine Shiller Enhanced CAPE N debuted in October of 2013. Since then, DSENX has accumulated assets of about $1.63 billion, according to the most recently available information. Jeffrey J. Sherman is the fund's current manager and has held that role since October of 2013.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. DSENX has a 5-year annualized total return of 6.45% and it sits 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 1.25%, which places it in the middle 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 14.28%, the standard deviation of DSENX over the past three years is 18.75%. The standard deviation of the fund over the past 5 years is 16.46% compared to the category average of 12.93%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment.
Nevertheless, with a 5-year beta of 1.16, the fund is likely to be more volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. DSENX's 5-year performance has produced a negative alpha of -0.81, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, DSENX is a no load fund. It has an expense ratio of 0.79% compared to the category average of 1%. DSENX is actually cheaper than its peers when you consider factors like cost.
This fund requires a minimum initial investment of $2,000, and each subsequent investment should be at least $100.
Bottom Line
Overall, DoubleLine Shiller Enhanced CAPE N ( DSENX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
Your research on the Large Cap Blend 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. 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.