Top Stock Funds Ranked by Risk-Adjusted Returns
Fourth Quarter 2013

One way to produce an easily understood marriage of risk and return for funds is to adjust the fund return for risk. Funds with high returns that have above-benchmark standard deviations will have their returns proportionally lowered, and funds with lower returns and below-benchmark standard deviations will have their returns adjusted upward proportionally.

The risk-adjusted fund table below lists the top funds by risk-adjusted arithmetic average returns. The benchmark used for return and risk is the Standard and Poor’s 500 index. The returns of all domestic stock funds were adjusted for risk and ranked.

The table reports the risk-adjusted average annual return—what the fund would have returned if it had the same risk as the market—and the average annual return for the three-year period that it did earn. Also reported is the fund’s standard deviation for comparison purposes and the market risk index. Benchmark statistics are reported at the bottom of the table.

Category Fund
Name
(Ticker)
Average
Annual
Risk-
Adjusted
Return*
(%)
Risk
Index
(1.00 = Market Risk)
Annual
Standard
Deviation*
(%)
Average
Annual
Return*
(%)
Stk-MC Akre Focus Ret (AKREX) 24.3 0.82 10.0 20.0
Stk-LC Sequoia (SEQUX) 23.0 0.85 10.3 19.6
Stk-SC Buffalo Emerging Opp (BUFOX) 20.4 1.35 16.3 27.5
Stk-LC Vanguard Dividend Grth Inv (VDIGX) 20.4 0.78 9.4 16.0
Stk-LC Vanguard Hi Div Yld Idx Inv (VHDYX) 20.1 0.82 10.0 16.6
Stk-LC Vanguard Equity-Inc Inv (VEIPX) 19.9 0.85 10.3 16.9
Stk-LC Hennessy Total Return Inv (HDOGX) 19.6 0.59 7.1 11.5
Stk-LC Yacktman Focused Svc (YAFFX) 19.5 0.72 8.8 14.2
Stk-LC Yacktman Svc (YACKX) 19.5 0.75 9.1 14.6
Stk-LC Weitz Value (WVALX) 18.7 0.85 10.3 15.8
Stk-LC Parnassus Equity Inc Inv (PRBLX) 18.6 0.87 10.5 16.2
Stk-LC Vice Investor (VICEX) 18.5 1.09 13.2 20.2
Stk-LC Matthew 25 (MXXVX) 18.3 1.36 16.5 24.8
Stk-MC Nicholas (NICSX) 18.3 1.04 12.6 19.0
Stk-MC Value Line Small Cap Opprt (VLEOX) 18.2 1.03 12.5 18.7
Stk-SC Vulcan Value Partners Small Cap (VVPSX) 18.1 1.11 13.5 20.2
Stk-LC Copley (COPLX) 18.0 0.64 7.7 11.5
Stk-MC AmCent Veedot Inv (AMVIX) 18.0 0.94 11.4 16.9
Stk-SC T. Rowe Price New Horiz (PRNHX) 17.9 1.20 14.6 21.6
Stk-LC ING Corporate Leaders B (LEXCX) 17.6 0.99 11.9 17.4
Stk-LC Oakmark I (OAKMX) 17.2 1.07 13.0 18.5
Stk-LC Hennessy Cornerstone Val Inv (HFCVX) 17.2 0.83 10.1 14.3
Stk-LC Fidelity Strat Div & Inc (FSDIX) 17.1 0.75 9.1 12.8
Stk-LC Fidelity New Millennium (FMILX) 17.0 1.00 12.1 17.0
Stk-LC Fidelity Lg Core Enhcd Idx (FLCEX) 17.0 0.99 12.0 16.8
Stk-LC Weitz Partners Value (WPVLX) 17.0 0.93 11.3 15.8
Stk-LC Mairs & Power Grth Inv (MPGFX) 16.9 1.06 12.8 17.9
Stk-LC INTECH U.S. Core T (JRMSX) 16.7 1.01 12.2 16.9
Stk-LC PRIMECAP Odyssey Stk (POSKX) 16.7 0.93 11.2 15.5
Stk-LC Clipper (CFIMX) 16.6 0.91 11.0 15.1
Benchmarks
S&P 500 15.8 1.00 12.1 15.8
Russell 2000 11.6 1.38 16.7 16.0
*Over the past three years through September 30, 2013.