FBR FocusFBRVX

Morningstar Rating

Fund Research and Analysis

by Ryan Leggio

FBR Focus is still a better-than-average choice for value investors even though its longtime manager has left.

Since Aug. 24, 2009, a new trio of managers has steered this fund. David Rainey, Brian Macauley, and Ira Rothberg are the new comanagers. Read more

Kudos

Impressive long-term record.

Low turnover has meant limited trading and market impact costs. Read more

Risks

This fund does well when its chosen sectors are in favor, but it has also been left behind temporarily when other areas such as technology soar.

At times this fund may be flush with cash, which may drag down returns in strong markets until its manager fully invests it.

High fees are hard to justify now that a new management team is in charge.

None of the new managers has managed a fund before. Read more

Strategy

Management seeks companies of all sizes with sustainable returns on equity of 20% and higher. Company executives must manage their businesses with the shareholder in mind by reinvesting capital and avoiding Read more

Management

Charles T. Akre, who managed this fund since its year-end 1996 inception, departed in August 2009 to start his own fund. His three former analysts (David Rainey, Brian Macauley, and Ira Rothberg) will be the new comanagers on the fund. Read more

Inside Scoop

This concentrated fund has posted good returns in recent years thanks to big sector and stock bets and a large cash stake. However, the fund's longtime manager Chuck Akre Read more

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