Mutual Fund Marathon: The Top Funds Over Five Years: 2002-2006
by John Markese
The bears have dominated the market over the last month or two, but the last five years were dominated by a bull market for common stocksone bear year followed by four bull years. Over these years, some funds thrilled, others withered. And for long-term investors, it is the marathon winner, not the short-term sprinter, that counts.
To be a top fund requires beating a benchmark, and that benchmark is peer group performance. Just remember: For a fund to be one of the best, it cant look like all the rest. A top fund must distinguish itself by being different. Often, however, being different simply means taking on higher riskfor instance, industry concentration, few holdings, risky strategies, longer maturities, poorer credit risks.
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