Mutual Shares ZMUTHX

Morningstar Rating

Fund Research and Analysis

by Bridget B. Hughes, CFA

Mutual Shares recent performance is pleasant, but we're more focused on its strong long-term results.

After an uncharacteristically weak showing during 2008's market strife when this fund lost 38% and landed near the large-value category's worst third, the offering is looking stronger in 2009. Read more

Kudos

Has delivered solid long-term returns with volatility below the category norm.

Disciplined value strategy.

Shop's unique value culture is as robust as ever, a decade after legend Michael Price's early retirement.

Managers' willingness to become activist shareholders helps protect interests of fundholders. Read more

Risks

Fund buys extremely downtrodden securities that can sometimes take time to rise to their intrinsic value.

Unique asset mix will displease strict asset allocators and Modern Portfolio Theory mavens.

Fund's 12b-1 fee is higher than the more common 0.25%.

Performance during the recent downdraft has been worse than expected. Read more

Strategy

This deep-value fund looks for cheap stocks, merger-arbitrage situations, and distressed-debt opportunities. Its management uses a variety of methods to value companies, including enterprise value/EBITDA and sum-of-the-parts analyses. Read more

Management

Peter Langerman is a Mutual Series veteran who returned in 2005 to join Deborah Turner and David Segal after several years as director of New Jersey's Division of Investment. Langerman served as a portfolio manager and CEO of the firm before departing in 2002. Read more

Inside Scoop

This fund is the flagship of a famed shop with an intense culture of value investing. In addition to cheap stocks, its managers look for merger-arbitrage situations and distressed-debt opportunities. Read more

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