We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Berkshire Focus Fund (BFOCX) a Strong Mutual Fund Pick Right Now?
Read MoreHide Full Article
Any investors hoping to find a Mutual Fund Equity Report fund might consider looking past Berkshire Focus Fund (BFOCX - Free Report) . BFOCX carries a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
BFOCX is a part of the Berkshire family of funds, a company based out of Mikwaukee, WI. The Berkshire Focus Fund made its debut in July of 1997 and BFOCX has managed to accumulate roughly $188.55 million in assets, as of the most recently available information. Malcolm R. Fobes III is the fund's current manager and has held that role since July of 1997.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 0.49%, and is 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 -12.83%, 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. The standard deviation of BFOCX over the past three years is 36.07% compared to the category average of 27.15%. The standard deviation of the fund over the past 5 years is 32.03% compared to the category average of 24.5%. 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 1.23, so it is likely going to be more volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. The fund has produced a negative alpha over the past 5 years of -7.03, 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 mostly on equities that are traded in the United States.
Currently, this mutual fund is holding 79.43% stock in stocks, with an average market capitalization of $114.34 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Retail Trade
With turnover at about 1700.4%, this fund makes 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 1.94% compared to the category average of 0.99%. From a cost perspective, BFOCX is actually more expensive than its peers.
Investors need to be aware that with this product, the minimum initial investment is $5,000; each subsequent investment needs to 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. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Berkshire Focus Fund (BFOCX) a Strong Mutual Fund Pick Right Now?
Any investors hoping to find a Mutual Fund Equity Report fund might consider looking past Berkshire Focus Fund (BFOCX - Free Report) . BFOCX carries a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
BFOCX is a part of the Berkshire family of funds, a company based out of Mikwaukee, WI. The Berkshire Focus Fund made its debut in July of 1997 and BFOCX has managed to accumulate roughly $188.55 million in assets, as of the most recently available information. Malcolm R. Fobes III is the fund's current manager and has held that role since July of 1997.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 0.49%, and is 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 -12.83%, 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. The standard deviation of BFOCX over the past three years is 36.07% compared to the category average of 27.15%. The standard deviation of the fund over the past 5 years is 32.03% compared to the category average of 24.5%. 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 1.23, so it is likely going to be more volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. The fund has produced a negative alpha over the past 5 years of -7.03, 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 mostly on equities that are traded in the United States.
Currently, this mutual fund is holding 79.43% stock in stocks, with an average market capitalization of $114.34 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Retail Trade
With turnover at about 1700.4%, this fund makes 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 1.94% compared to the category average of 0.99%. From a cost perspective, BFOCX is actually more expensive than its peers.
Investors need to be aware that with this product, the minimum initial investment is $5,000; each subsequent investment needs to 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. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.