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3 Balanced Mutual Funds for a Smooth Ride

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3 Balanced Mutual Funds for a Smooth Ride

FPA Crescent Fund

FPA185 3 Balanced Mutual Funds for a Smooth RideFPA Crescent Fund (FPACX) manager Steve Romick has been masterful over time managing this $13.2 billion fund. His aversion to risk and keen stock-picking has landed this mutual fund in the top 2% of its Morningstar category during the past 10 years with a gain of 8.7% annually.

Romick places a great emphasis on protecting shareholders from downside risk, and has roughly 55% of the fund in stocks at present. Meanwhile, about 29% of this mutual fund is in cash and around 15% is allocated to bonds. FPACX can even sell stocks short, which he occasionally does on a limited basis.

Some years ago, the fund’s stock holdings were mostly small- and midcap names, but over time this focus has shifted to larger companies as this fund has seen assets grow substantially. Recent top holdings include: Microsoft (MSFT), AON (AON), CVS Caremark (CVS), Thermo Fischer Scientific (TMO) and Covidien (COV).

This growth in assets, however, has not hurt performance, and FPA Crescent remains a very attractive mutual fund option. Turnover is 26% over the past year, and FPACX charges 1.16% in expenses, or $116 for every $10,000 invested.


Article printed from InvestorPlace Media, http://investorplace.com/2013/08/3-balanced-mutual-funds-for-a-smooth-ride/.

©2014 InvestorPlace Media, LLC

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