Looking For a Good Mid-Cap Growth Fund

Simon

I'm looking for a high quality mid-cap growth fund to fill a void in my IRA portfolio (20 year horizon). But as most of us know, just about all of the best ones are closed to retail investors. I seem to be left with three choices: Buffalo Discovery (BUFTX), Scout Mid-Cap (UMBMX), and Principal MidCap P (PMCPX). I believe I can still get PMCPX through my T Rowe Price brokerage but the P shares will convert to Institutional shares in June.

Are there any other no-load managed funds which have consistently beaten the mid-cap growth index? I'm half tempted by TRP Diversified Mid-Cap Growth (PRDMX) but it seems to be less stellar than the closed RPMGX.

I'm waiting to buy on the next decent dip. Cheers.

Ted

Simon: For your information, U.S. News & World Report ranks 116 Mid-Cap Growth Funds and 11 ETfs.
Regards,
Ted
http://money.usnews.com/funds/mutual-funds/rankings/mid-cap-growth

ETFs:
:http://money.usnews.com/funds/etfs/rankings/mid-cap-growth

MikeM2

VMGIX(mid-cap growth index mutual fund) and IJK (SP 400 mid-cap growth ETF) are place holders since I don't have any strong opinions about this.

districtwanderer

AKREX is still open, but probably not for much longer. Chuck Akre has a long record of outperformance. But my primary concerns with the fund are the high e.r. and succession.

BenWP

I also like AKREX and own it. Understand your attraction to the Buffalo and Scout funds; unfortunately they did not perform as I expected when I owned them.

gmarceau

CIPMX is worth a look

bartab

AKREX shows as only 37% mid-cap on Morningstar. I have owned both but of the two only in BUFTX as of now. I don't know how it can be said that AKREX out performs BUFTX. It depends on what sectors you want to be stronger in. AKREX is heavy financial, and BUFTX more into tech and health. Don't know how much it matters in the long run, as they run neck and neck.

Tony

I suggest the Baron Asset Fund, BARAX.

Simon

Thanks for all the suggestions, much appreciated. I've read a few critical comments about BUFTX and wondered why. It has stable management with a proven track record and expenses are Okayish. I know it used to be a tech fund but that's down to 27% now. I like what I see with AKREX, except it's over 50% large growth.

districtwanderer

@bartab makes a valid point that AKREX is not squarely in the mid-cap space, which is important if you are looking for pure mid-cap exposure. It would be more accurate to say that AKREX is an all-cap fund and sector agnostic--they are looking for any company that meets their criteria for long-term growth and compounding.

PRESSmUP

I have a toe-hold in VETAX which is a mid-cap blend fund....seems to be a pretty solid performer over an extended period. With $8 billion in AUM, it's gotten some attention and compares favorably with AKREX.

FYI....it's closing on June 30.

VintageFreak

I'm worried about succession woes at AKREX. So I sold I moved into CIPMX long time back. Not a 1 for 1 replacement. AKREX is accidental mid cap. I also bought SCMFX, but we all know how that turned out. PARMX would be an option but can't buy Parnassus.

VIEIX, VIMSX would be my recommendations, frankly. Not sure why you want "growth". FMIMX is another option.

joe74

Take a look at DEOPX. Not sure about Davenport, yet... but watching them.

Does it have to be "growth"? If not, take a look at VASVX.

Art

PARMX

Simon

VintageFreak said:

VIEIX, VIMSX would be my recommendations, frankly. Not sure why you want "growth". FMIMX is another option.

I'm looking specifically for growth because I believe this bull market has years left to run - perhaps to 2030. After nearly a decade, we're finally transitioning from an interest rate driven market to an earnings driven market, and growth stocks are likely to benefit the most. Earnings will come from the application of new technologies.

msf

I have my doubts about PMCPX being available, since the fund and its VA clone (PVC Mid Cap Account) have been closed for some time.

But if you can get in, it's a fine fund (as one can see from the summary page I linked to for the clone fund). Principal (and its PVC clones for VAs) are often very good funds. I was happy to see them opened up to retail investors (they had previously been available primarily through employer retirement plans - at least that was my impression).

Long term management, low turnover, moderately low cost, fine pretty consistent performance. The main concern would seem to be bloat (which explains why it's been closed for awhile).

davidrmoran

If you are really going to hold for up to 13y I sure would consider Tillinghast (FLPSX), who is probably not going anywhere, even though his area is not strictly growth. That fund gives a nice amount of non-US exposure to boot.

bee

POAGX, though presently - limited access.
BCSIX, Sml/Mid Cap Growth - also limited access.

Maybe others have idea on getting into one or both. Possibly directly through Fund company.

Primecap Odyssey Funds:
odysseyfunds.com/index.html

Brown Capital Management:
browncapital.com/products/small-company-fund

VintageFreak

Simon said:

I'm looking specifically for growth because I believe this bull market has years left to run - perhaps to 2030. After nearly a decade, we're finally transitioning from an interest rate driven market to an earnings driven market, and growth stocks are likely to benefit the most. Earnings will come from the application of new technologies.

Okay. Ask yourself this question. What are the changes of an actively managed mid cap growth fund outperforming VIMSX over the next 13 years?

I don't mean to preach. When I buy an actively managed fund, I'm not trying to mimic/outperform the market. I want to buy it because I want to assume MANAGER RISK. In my retirement accounts, I buy index funds because I am assuming MARKET RISK.

The worst outcome is when you get both MANAGER RISK and MARKET RISK. So if you want to buy an actively managed mid growth fund, maybe you can consider something like VMRGX. Take any of the above suggestions that are "mid growth" and compare against VMRGX. Hopefully that is instructive.

BobC

Hi, Simon. I would not get terribly hung up on whether a fund is style-box pure. We use Scout UMBMX. Long-time manager Pat Dunkerley. Great 1, 3, 5, and 10-yr rankings. Strong Sortino. You might also look at Parnassus PARMX. This ESG fund is really quite good. For many client accounts, we use VIMAX as a core, then add active as the "explore" piece.

amateur

Hi @PRESSmUP
You mention above that you have a toe-hold in Victory Sycamore Established Value A VETAX and compare it favorably with Akre Focus AKREX, and you added "FYI....it's closing on June 30".

I called Victory at 800-539-3863, and was told the only fund they were aware of that was closing was VPGEX / VPGYX on June 16th.

Question: what is your source of information for the close date of VETAX?

Tony

I'm not PRESSmUP, but here it is, amateur: http://quote.morningstar.com/fund-filing/Supplement-to-Prospectus/2017/4/11/t.aspx?t=VETAX&ft=497&d=b3c502f30475222fa14bbfdd00d1ddb0

PRESSmUP

Thanks Tony...yes, M* is the source for the notice.

amateur

Thanks Tony and PRESSmUP