Morningstar Rating

Fund Research and Analysis

by Harry Milling
It's a mistake to give up on Brandywine Blue.

It's understandable to second-guess this fund given its abysmal recent performance relative to other large-growth funds. Its mere 6.21% gain for the year to date through Oct. 23, 2009, amid a torrid market recovery has put returns at the very bottom of its category.  Read more 

Kudos

Strong long-term returns.
Experienced management.
Deliberate and consistent growth-investing approach. Read more 

Risks

High turnover can produce large capital gains distributions.
Management's bold sector and stock-specific bets lead to a bumpy ride. Read more 

Strategy

The same team that runs Brandywine Fund uses an identical approach here, but this fund focuses on larger names and tends to own fewer holdings (typically around 35 stocks). The team looks for companies whose earnings are increasing rapidly (preferably in the 20% to 30% range annually), but it also requires that a company have three years of earnings history, $3 million in aftertax income, and a reasonable P/E ratio.  Read more 

Management

Fund family founder and chairman Foster Friess is no longer involved with the day-to-day portfolio-management process. Bill D'Alonzo, who is also the fund shop's CEO, has been leading the team of analysts here since the fund's 1991 inception. D'Alonzo and team also steer the fund's more famous sibling, Brandywine Fund BRWIX, as well as Brandywine Advisors Midcap Growth BWAFX.  Read more 

Inside Scoop

Snagging fast-growth stocks and selling them before they get too pricey or upon finding better opportunities, management runs this fund much as it does sibling Brandywine Fund.  Read more 

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