If you have been looking for Mutual Fund Equity Report funds, it would not be wise to start your search with Berkshire Focus Fund (BFOCX Quick QuoteBFOCX - Free Report) . BFOCX bears a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.

History of Fund/Manager

BFOCX finds itself in the Berkshire family, based out of Mikwaukee, WI. Berkshire Focus Fund debuted in July of 1997. Since then, BFOCX has accumulated assets of about $260.01 million, according to the most recently available information. The fund's current manager, Malcolm R. Fobes III, has been in charge of the fund since July of 1997.

Performance

Of course, investors look for strong performance in funds. BFOCX has a 5-year annualized total return of 8.48% and it sits in the bottom 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 -4.22%, which places it in the bottom 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. BFOCX's standard deviation over the past three years is 34.38% compared to the category average of 24.89%. The standard deviation of the fund over the past 5 years is 30.83% compared to the category average of 23.05%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

Investors should note that the fund has a 5-year beta of 1.32, so it is likely going to be more volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. The fund has produced a negative alpha over the past 5 years of -2.72, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Holdings

Investigating the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is principally on equities that are traded in the United States.

This fund is currently holding about 88.58% stock in stocks, with an average market capitalization of $290.62 billion. The fund has the heaviest exposure to the following market sectors:

1. Technology
2. Retail Trade

Turnover is about 1424.8%, so those in charge of the fund make more trades in a given year than the average of comparable funds.

Expenses

For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, BFOCX is a no load fund. It has an expense ratio of 1.90% compared to the category average of 0.99%. Looking at the fund from a cost perspective, BFOCX is actually more expensive than its peers.

This fund requires a minimum initial investment of $5,000, and each subsequent investment should be at least $500.

Bottom Line

Overall, Berkshire Focus Fund ( BFOCX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and higher fees, Berkshire Focus Fund ( BFOCX ) looks like a somewhat weak choice for investors right now.

Your research on the Mutual Fund Equity Report 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.