Commodities, Europe and Health shine
Other problems? Well, oil prices surged and inflation started to perk-up. There were even continued debt issues in places like Portugal.
But such things were not problems as the S&P saw its best gains since 1998, with a 5.4% return. The Dow was up 6.4%. And many mutual funds performed in kind.
And yes, equity mutual funds were a good place to put your money. Some of the best categories included energy (+13.34%), small growth (+9.66%), health (8.34), natural resources (+8.30%) and even European stocks (+6.98 %).
So, let’s take a look at some of the mutual funds that were the best performers of the first quarter:
Fidelity Select Energy (FSENX)
For the quarter, crude oil futures spiked 17% to over $106 per barrel. No doubt, the Middle East turmoil has been a big driver. Consider that Libyan oil is light, sweet quality – which is tougher to refine.
A beneficiary of the price increase was the Fidelity Select Energy (MUTF: FSENX) mutual fund, which has $3 billion in assets. No doubt, the portfolio manager, John Dowd, has a good sense for value and timing. This was definitely the case on how he traded the shares of BP (NYSE: BP) during the Deepwater Horizon oil spill.
And as for the first quarter, Dowd had a standout performance. His fund posted a sizzling gain of 18.80%.
Oppenheimer Discovery (OPOCX)
As investors warm-up to risks, they are putting more money into small cap companies. After all, as the economy rebounds, they should be winners.
One of the quarter’s top small cap funds was Oppenheimer Discovery (MUTF: OPOCX). The mutual fund manager, Ron Zibelli, looks for growth opportunities but tries to minimize the risks. This includes investing in various industries as well as keeping a focus on lower valuations. The top market segments include industrials (17.02%), technology (31.49%), healthcare (14.40%) and consumer cyclicals (18.49%).
The performance for the first quarter? It was a hefty 15.32%.
T. Rowe Price Health Sciences (PRHSX)
Over the past couple years, healthcare stocks have been laggards. But with attractive valuations – as well as less concern about Obama-care – investors have been putting more money into the sector.
For example, the T. Rowe Price Health Sciences (MUTF: PRHSX) fund posted a 13.64% return in the quarter. Interestingly enough, the focus is mostly on smaller companies. The fact is that mega pharma companies are facing tough problems with patent expirations and a thin pipeline of new drugs.
The top five holdings of the T. Rowe Price fund are: Alexion Pharmaceuticals (NASDAQ: ALXN), Gilead Sciences (NASDAQ: GILD), Merck (NYSE: MRK), Celgene (NASDAQ: CELG) and Incyte(NASDAQ: INCY).
Ivy Global Natural Resources (IGNAX)
There seems to be no end to the commodities boom. Then again, there continues to be heavy demand from emerging economies like China and India.
A strong performer for the quarter is the Ivy Global Natural Resources (MUTF: IGNAX) fund, which has $7.1 billion in assets. The fund posted a 12.77% return.
In light of the growth in natural resources, it is not easy to find cheap companies. But Ivy Global’s portfolio manager, Fred Sturm, has been able to uncover good values. He also understands market cycles. Keep in mind that Sturm has managed the Ivy Global fund since 1997.
ING Euro STOXX 50 Index (IDJAX)
It seems that most of the news that comes from Europe is bad. There is even talk that the euro will eventually go away.
Despite all this, that there are still many opportunities. Just look at the ING Euro STOXX 50 Index(MUTF: IDJAX). In the quarter, the fund increased by 12.77%.
No comments:
Post a Comment