(PUB) Morningstar FundInvestor

June 2 014

Morningstar FundInvestor

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ClearBridge Aggressive Growth Rolls On Leaders & Laggards | Katie Reichart

took over in 2011 , though it’s yet to be tested in a big market sell-off on his watch. As a result, it earns a Morningstar Analyst Rating of Neutral.

Laggards Goodhaven GOODX

Led by former comanagers of Fairholme FAIRX , Larry Pitkowsky and Keith Trauner, this value-oriented fund is not afraid to look different from the competition, which can also result in out-of-step performance. A double-digit cash stake weighed heavily on results over the past year, as the fund saw inflows that the managers couldn’t quickly put to work in an up market. A relatively concentrated portfolio of out-of-favor turnaround plays has hurt lately. For instance, Walter Investment Management WAC , a top position, has dropped more than 20% over the past year. A sizable position in Barrick Gold ABX also hurt in 2013 . Marsico Growth MGRIX This fund has cooled off after a relatively strong 2013 , leading to a weak showing for the one-year period. Several of the fund’s technology and financials picks have weighed on recent performance, including LinkedIn LNKD and Visa V. More concerning than short-term underperformance, though, is the insta- bility of Marsico’s investment team, which has faced several departures of analysts and managers, as well as broader concerns at the firm level after several debt restructurings. For that reason, the fund receives a Morningstar Analyst Rating of Neutral. Baron Opportunity BIOPX An above-average technology stake (about twice the category norm) hasn’t done this fund any favors lately. Several picks in the sector have weighed on relative performance over the past year, including Angie’s List ANGI and LinkedIn, pushing the fund toward the bottom of the mid-growth category. Over the longer term, the fund has a stronger record under manager Michael Lippert, and a relatively small asset base is also a plus. It retains its Bronze Analyst Rating. œ Contact Katie Reichart at katie.reichart@morningstar.com

Leaders ClearBridge Aggressive Growth SHRAX

Ten Best-Performing Funds

Fund Name

YTD Cat Rank %

This fund typically does well in up markets, and the past year has been no exception: The fund’s been one of the large-growth category’s top performers. Man- agers Richie Freeman and Evan Bauman aren’t shy about building big positions in individual names and sectors; this can make for some volatility, but it has worked over time. Holding more than a third of assets in health care has helped over the trailing year, with longtime biotech picks Biogen Idec BIIB (nearly 10% of assets) and Forest Laboratories FRX ( 5% ) boosting returns. Shunning stodgier consumer defen- sive names has also been an advantage, though that positioning means the fund may not hold up as well in a market pullback. Dodge & Cox Global Stock DODWX The managers running this fund are known for focus- ing on the long term and buying stocks when they’re out of favor. That strategy can lead to some short- term pain but also big payoffs when their patience is rewarded. That’s been the case recently, as long- time laggard Hewlett-Packard HPQ rallied. Mean- while, the fund’s above-average emerging-markets stake relative to peers’ hasn’t held it back over the past year. In fact, the managers didn’t hesitate to buy Indian bank ICICI IBN when it sold off in 2013 , a move that has since boosted performance. Janus Contrarian JSVAX This fund’s all-cap nature has helped it stand out versus large-blend peers. Owning a bigger slug of small- and mid-cap names has certainly been an advantage over the past year compared with peers that focus more heavily on large caps. What’s more, the fund’s tendency to invest in lower-quality, debt- laden companies that lack economic moats has worked in this market environment. The fund has done relatively well since manager Dan Kozlowski

ClearBridge Aggressive Gr Dodge & Cox International

1 1 1 1

Janus Contrarian T

Matthews India Investor

Oakmark Select I 1 Vanguard PRIMECAP Core In 1 Virtus Foreign Opportunit 1 Fidelity Independence 2 Manning & Napier Equity 2 Royce Low Priced Stock Sv 2

Ten Worst-Performing Funds

Fund Name CGM Focus CGM Realty

YTD Cat Rank %

100 100

Ariel Discovery Investor

99 99 98 98 98 97 97 96

Greenspring

Baron Opportunity Retail

Berwyn

Weitz Hickory

Conestoga Small Cap

Scout Core Plus Bond Inst

Auxier Focus Inv