Large-cap blend funds seek to combine the best of both worlds–growth-oriented stocks which provide high earnings growth, tempered by value-oriented issues which offer the stability of steadily-growing companies with predictable earnings streams.
Although value stocks have outperformed growth over the past few years, some observers believe growth is poised for a rebound. However, by investing in a blended fund, one can possibly ignore the eternal pendulum between growth and value.
One of the top large-cap blend performers, the $1.055-billion Jennison 20/20 Focus Fund (PTWZX) holds up to 20 growth stocks and up to 20 value stocks in the same portfolio. The fund is run by Spiros Segalas and David Kiefer.
As of June 30, 2006, Google (GOOG), 3.0%; Roche Holdings, 2.6%; UBS (UBS), 2.5%; Walt Disney (DIS), 2.4%; and Gilead Sciences (GILD), 2.4% comprised the fund’s top five growth holdings. The top five value stocks included TXU (TXU), 3.1%; Suncor Energy (SU), 3.1%; Comcast (CMCSA), 3.1%; Nexen (NXY), 3.1%; and Waste Management (WMI), 3.0%.