Focused funds aim to boost gains by not diluting strong picks with a lot of also-rans. That’s what Marsico 21st Century Fund (MXXIX) is doing. The $92 million portfolio is part of Marsico Funds, which specializes in concentrated portfolios.
The fund, with 34 holdings, was up 33.18% this year going into Tuesday. That topped the S&P 500 by 17.43 percentage points and was 14.21 points ahead of its large-cap growth peers.
Open since Feb. 1, 2000, the fund lost an average annual 8.03% the past three years vs. losses of 11.27% for the S&P 500 and 19.04% for its category.
Manager Corydon Gilchrist, who took the reins from Jim Hillary on Feb. 1, says smaller stocks served the fund best through the market and economic downturns. But he’s been buying a lot of large caps lately. Beaten down in the bear market, many such firms were forced to cut costs. That now makes them attractive. “Ballpark, normally about 33% of our assets are in each cap size,” Gilchrist said. “Then we go for the best opportunities for value and growth wherever they are.” So the fund has 50% of its money in large caps. It has 35% in mid caps and 15% in small caps.