If you’ve been stuck searching for Mutual Fund Equity Report funds, you might want to consider passing on by Hartford Capital Appreciation A (ITHAX) as a possibility. ITHAX has a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Hartford is based in Woodbury, MN, and is the manager of ITHAX. Hartford Capital Appreciation A made its debut in July of 1996, and since then, ITHAX has accumulated about $4.15 billion in assets, per the most up-to-date date available. The fund’s current manager, Gregg Thomas, has been in charge of the fund since March of 2013.
Of course, investors look for strong performance in funds. This fund in particular has delivered a 5-year annualized total return of 7.24%, and it sits in the bottom third among its category peers. If you’re interested in shorter time frames, do not dismiss looking at the fund’s 3-year annualized total return of 4.54%, which places it in the bottom third during this time-frame.
When looking at a fund’s performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Over the past three years, ITHAX’s standard deviation comes in at 21.53%, compared to the category average of 17.44%. Looking at the past 5 years, the fund’s standard deviation is 18.98% compared to the category average of 15.27%. This makes the fund more volatile than its peers over the past half-decade.
Investors should note that the fund has a 5-year beta of 0.99, which means it is hypothetically as volatile as the market at large. Another factor to consider is alpha, as it reflects a portfolio’s performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. Over the past 5 years, the fund has a negative alpha of -1.83. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Exploring the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is principally on equities that are traded in the United States.
Currently, this mutual fund is holding 86.72% stock in stocks, and these companies have an average market capitalization of $168.75 billion. The fund has the heaviest exposure to the following market sectors:
This fund’s turnover is about 116%, so the fund managers are making more traders than comparable funds in a given year.
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, ITHAX is a load fund. It has an expense ratio of 1.04% compared to the category average of 0.92%. So, ITHAX is actually more expensive than its peers from a cost perspective.
While the minimum initial investment for the product is $2,000, investors should also note that each subsequent investment needs to be at least $50.
Overall, Hartford Capital Appreciation A ( ITHAX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and higher fees, Hartford Capital Appreciation A ( ITHAX ) looks like a somewhat weak choice for investors right now.
Don’t stop here for your research on Mutual Fund Equity Report funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare ITHAX to its peers as well for additional information. And don’t forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.