The Small-Cap Growth objective group posted a loss of -4.9% for the 12-month period through December, underperforming the Large-Cap Growth objective group by 1.7%.  For much of the third quarter of 2011, many stocks, including small caps, were down due to uncertainties caused by a continuing high unemployment rate and conflicting opinions on how the European debt crisis should be dealt with.  Nevertheless, the central banks, including the European Central Bank, the banks of Britain, and the U.S. Federal Reserve, agreed to ease the debt crisis by injecting liquidity into the market.  This action helped the market gain traction in the final weeks of 2011.  Overall, the U.S. economy continues to grow (at a slow pace).  Other positive news reported in late December includes the addition of 200,000 jobs added in the private sector, showing that the labor market appears to be recovering.  This month, we will take a look at a few mutual funds from the Small-Cap Growth asset class that may be of interest to you.

Merger Fund’s objective is to provide attractive risk-adjusted returns in virtually all market environments while preserving investor capital and minimizing volatility-based risk.  

Vanguard Wellesley Income Fund’s objective is to provide long-term growth of income, a high and sustainable level of current income, and moderate long-term capital appreciation.  

In pursuit of this objective, the fund invests approximately 60% to 65% of its assets in investment-grade fixed-income securities that it believes will generate a reasonable level of current income. The remaining 35% to 40% of the fund’s assets are normally invested in common stocks of companies that have a history of above-average dividends or expectations of increasing payouts. This investment objective, while somewhat conservative in a strong bull market, can provide very good relative returns when market conditions are weaker and uncertain.

For the 11-month period ended in November, the Large-Cap Value objective group posted a total return of -3.99%.  During the months of September and October, the stock market gave back some of its gain as the Sovereign Debt crisis worsened.  However in November, the stock market rebounded just as the financial ministers of the European Union came to an agreement to bailout Greece as long as the Greek government passed measures to control its spending.  Furthermore, Italy’s new prime minister devised similar plans to tackle Italy’s debt.  Also, investor confidence was further boosted by reports that the unemployment rate dropped to 8.6% in November, along with an increase in consumer spending, which was likely a result of the upcoming holiday season.   This month, we will take a look at a few mutual funds from the Large-Cap Value asset class that may be of interest to you.

Fifth Third Quality Growth Fund’s objective is to provide growth of capital. Income is a secondary objective.

In pursuit of this objective, the fund invests at least 65% of its assets in the common stocks of growth companies. The goal is to find those companies selling below what management believes are their intrinsic values in order to deliver an attractive return. This is a relatively focused fund, owning 68 stocks as of September 30, 2011.

Meridian Growth Fund’s objective is long-term growth of capital.  

In pursuit of this objective, the fund invests primarily in a diversified portfolio of publicly traded common stocks of U.S. companies. Under normal circumstances, the fund emphasizes growth companies. It may invest in securities of companies of any capitalization across a broad range of industries. The fund may invest up to 25% of its total assets in securities of foreign companies, including those located in emerging markets. This is a relatively focused fund, owning 54 stocks as of September 30, 2011.

The Large-Cap Growth objective group posted a total return of -0.85% for the year-to-date period through October 31, 2011.  The beginning of the third quarter did not start well.  Volatility in the market continued to worry investors as the European sovereign debt crisis worsened and the U.S. credit rating received a downgrade from AAA to AA+.  Conversely, a decrease in crude oil prices and fewer supply disruptions led to upticks in both consumer and business spending.   Indeed, the government reported that the economy grew at the annualized pace of 2.5% for the third quarter ended in September 30, 2011, a big leap from an annualized gain 1.3% posted for the second quarter.  With this positive news, along with a bailout agreement reached to prevent Greece from defaulting on its debt, the stock market rallied in October.  This is reflected in the Russell 1000 Growth Index posting a total return of nearly 11% in October, ...   More >

Intrepid Small Cap Fund’s objective is to seek long-term capital appreciation.

In pursuit of this objective, the fund invests at least 80% of its assets in the common stocks of small-capitalization companies. The goal is to find small-cap companies selling below what management believes are their intrinsic values in order to deliver an attractive absolute return. This is a relatively focused fund, owning 42 stocks as of June 30, 2011.

Dreyfus Appreciation Fund’s objective is to seek long-term capital appreciation consistent with the preservation of capital, with current income as a secondary goal.

During the year-to-date period through September, the Energy/Natural Resources objective group posted a loss of -23.1%.  At the beginning of July, the prices of natural gas and crude oil rose but, amid fears of another recession, political unrest in the Middle East, as well as the sovereign debt crisis in Europe, the prices of these energy-related equities fell for the duration of July and into August. Natural gas prices continued to fluctuate in August and September and ended each month with a decline.  On the other hand, the Precious Metals asset class performed well in July and August.  Gold became a popular choice among investors looking for...   More >