Morningstar Rating

Fund Research and Analysis

by John Coumarianos
Stick with Columbia Marsico Focused Equity.

This fund hasn't given investors much reason to cheer lately, but it's proven a fine large-growth holding over the longer haul. While stumbling with bottom-half category performances in 2008 and again for nearly the first 10 months of 2009, manager Tom Marsico has delivered a 0.  Read more 

Kudos

Manager boasts a long and impressive track record as a growth manager.
This fund's returns since inception beat the category average by leaps and bounds. Read more 

Risks

The fund does a fair amount of top-down-driven maneuvering, which has the potential to backfire over short periods.
Concentrated portfolio of about 25 stocks makes it vulnerable to weakness in just a few holdings. Read more 

Strategy

Manager Tom Marsico combines top-down analysis with bottom-up stock-picking. He fills the bulk of the portfolio with steady-growth stocks that he intends to hold for the long haul, but he also has owned more-explosive growth names in the tech and telecom areas.  Read more 

Management

Tom Marsico started his own investment-management shop in 1997, after several years at two other growth-oriented shops: Fred Alger Management and Janus Capital. Marsico has a staff of 12 analysts and four traders. Two other portfolio managers at Marsico Capital Management also chip in.  Read more 

Inside Scoop

Although Tom Marsico is best known for picking classic-growth stocks, he also includes a few beaten-down names and others that fall outside traditional growth areas. He keeps just 25-35 names in this concentrated portfolio, making the fund more vulnerable to problems in just a few picks, but he has managed to keep volatility within category norms.  Read more 

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