Columbia Contrarian Core Fund
Expense Ratio: 1.16%
In today’s highly competitive markets, there are cases where large-cap companies that have imploded. A classic example is Kodak. Still, there are lots of times when a struggling company is able to get back on track as well … and thus make juicy profits for investors.
Essentially, this is what Columbia Contrarian Core Fund (LCCAX) looks for. As the fund’s prospectus puts it, LCCAX has a “unique contrarian philosophy based on the belief that investment opportunities can be found where the market displays an inordinate amount of pessimism.”
For example, Pope bought Citigroup (C) in 2010, when the company’s shares bottomed out. Then there was a gutsy purchase of Hewlett-Packard (HPQ) late last year. As of now, some of his major holdings include IBM (IBM) and Apple (AAPL).
While it’s a risky strategy, the fund’s manager Guy Pope has a solid track record. For the past three years, the average annual return was over 18%.
Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.