The AlphaProfit Focus model portfolio completed its fifth anniversary on September 30, 2008. As part of monitoring portfolio performance, we compare the Focus model portfolio’s performance with those of the 10 largest non-diversified domestic funds in the large-cap, mid-cap, small-cap, and multi-cap categories.
During the past five years, the AlphaProfit Focus model portfolio has outperformed all but one of its peer group non-diversified mutual funds. The fund outperforming the Focus portfolio showed 49% higher risk as measured by its standard deviation.
Portfolio, Fund, or Benchmark | Ticker | Ann. Return, % | Std. Dev., % |
AlphaProfit Focus Portfolio | 12.2 | 9.0 | |
Ten Largest Non-Diversified Domestic Funds | |||
Janus Twenty | JAVLX | 11.4 | 8.9 |
A Focus Mutual Fund | 23.8 | 13.4 | |
Marsico Focus | MFOCX | 5.0 | 6.7 |
Janus Adviser Forty Cl. S | JARTX | 10.4 | 8.5 |
Columbia Marsico Focus Cl. Z | NFEPX | 4.8 | 6.7 |
Morgan Stanley Focus Gr. Cl. C | AMOCX | 2.4 | 8.2 |
FBR Focus | FBRVX | 8.6 | 7.4 |
Fidelity Fifty | FFTYX | 2.5 | 8.4 |
Jennison 20/20 Focus Cl. C | PTWCX | 9.4 | 7.5 |
Neuberger Berman Focus Inv. | NBSSX | 3.0 | 7.2 |
Median Non-Diversified Fund | 6.8 | 7.9 | |
S&P 500 | 5.2 | 5.3 | |
Data: Mutual fund returns from Morningstar | |||
The AlphaProfit Focus model portfolio is a non-diversified portfolio, pursuing aggressive growth. It is an alternative to investing in non-diversified domestic mutual funds. Standard deviation is a measure of risk. A higher standard deviation implies greater risk.
In addition to performance, here are three other reasons to invest with the Focus model portfolio:
Prudent Risk Taking: The Focus model portfolio balances return with diversification and tax efficiency. The Focus portfolio typically holds two to four sectors or industry group funds to mitigate risk. By using the Focus portfolio for a portion of their assets, investors with diversified portfolios increase the return of their overall portfolio.
The Focus portfolio usually holds sector or industry group funds 6 months or longer. Aggressive investors with a long investment time horizon use the Focus portfolio for their tax-deferred accounts.
Low Investment Requirements: Focus model portfolio can be used with as little as $1,000 in SEP-IRA or Keogh accounts or $5,000 in regular or other qualified accounts like Rollover, Roth, or Regular IRA.
Consistent Investment Process and Style: Mutual fund investors often worry about changes in fund management affecting returns. The Focus model portfolio makes it less of an issue by using a consistent strategy to select sectors and industry groups using AlphaProfit’s ValuM investment process.
