Thread: Mid Cap Fund?

Take a look at:
Muhlenkamp MUHLX, Fidelity smal cap value FCPVX, Third Avenue TASCX.
A great International small and midcap is Fidelity FSCOX, new fund started in mid 2005 and is up over 30% since inception and 7% ytd in 2006.

Hennessy HFTFX was the top rated midcap for 2005.

i'm looking for domestic midcp. the funds you recommended are small cap and international.

Muhlenkamp (MUHLX), Vanguard Strategic Equity (VSEQX), and Vanguard Capital Opportunity (VHCOX). I have these in my taxable accounts (MUHLX and VHCOX) and Traditional IRA (VSEQX). Vanguard Capital Opportunity is closed to new investors. Muhlenkamp is mid-cap blend/value fund, Vanguard Capital Opportunity in mid-cap growth, and Vanguard Strategic Equity in mid-cap blend. These mid-cap funds are four star (MUHLX and VSEQX) or five star (VHCOX), as rated by Morningstar.

vdc,

Market predictions aside, a good midcap fund can be a welcome long-term addition to many portfolios precisely because of their middle-class status. Midcap stocks tend to be more stable than small caps, but they're still capable of more rapid growth than large caps.

A few to look at: Third Avenue Value (TAVFX) - expense ratio of 1.12%, the Vangyard Mid Capitalization Index ( VIMSX) - expense ratio of 0.22%, the Fidelity Value (FDVLX) - expense ratio of 0.95%

Dennis
ps-over the past three years midcaps gained 17.4% in average annualized returns, significantly out performing large caps'10.9% and running close behind small caps' 18.8%. IMHO the emergence of midcaps is part of a larger trend of investors moving up the market-cap ladder. Investors have started to turn away from small caps and will eventually favor large caps once again. Until then and in the meantime midcaps reign supreme.

Originally Posted by vdc

what mutual funds do you all own in the Mid Cap area, as the TSP does not offer one? i'm asking this because i don't have any mid cap funds and would like to add one to my portfolio to complete my asset allocation.

thanks
eds

V,

you do realize that the S fund is really a midcap/smallcap fund, being 4500 of the wilshire 5000, the 500 of s&p 500 makin up the remainder of the W5000?

i appreciate the replies everyone has given.

i did know the the S fund had a little midcaps in it but was not sure if it was enough in the midcap area for my target allocation. right now, the S fund is 20% of my overall portfolio.

i had been considering VIMSX (Vanguard Midcap Index) for a while. I will continue to do more research on it, however, it seems like the best choice out there for me right now. i really wanted to get into the TRowe Price midcap funds but both are closed to new investors.

VIMSX would work out great as this investment would be for a taxable account. however, i'm not very fond of the investment minimum of $3K.

do you guys feel that investing in the S fund does not warrant investing in a seperate midcap fund outside the TSP?


thanks again

V,

depending on your age, tax situation, and a few other factors, it is more advantageous for some to take the matching in the TSP, then max out a roth IRA, then back to the TSP. I would suggest the S does capture enough midcaps, as 'midcaps' go, though in the roth you could diversify into a sector midcap, like an energy for example, which became an obvious play fairly early last year for the remainder of the year, and still looks promising.

Originally Posted by FUTURESTRADER

V,

you do realize that the S fund is really a midcap/smallcap fund, being 4500 of the wilshire 5000, the 500 of s&p 500 makin up the remainder of the W5000?

Correct, except I believe the Wilshire 4500 is made up of EVERY U.S. stock that is not in the S/P 500, so it now totals over 5000 stocks.

Dave
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Originally Posted by vdc

do you guys feel that investing in the S fund does not warrant investing in a seperate midcap fund outside the TSP? thanks again

If you invest in the C & S Funds, you'll get large caps, mid caps, and small caps based on their market capitalization. However, if you want to overweight mid caps, you'll have to go to a mid cap fund.

You might want overweight mid caps if you believe they will out perform large caps and small caps. Alternatively, they might be good diversifiers. I doubt it, but I haven't checked it out.

Personally, I'd go with the C & S funds based on market capitalization, i.e. 79/21%.

Currently, I have my $$$ invested in the TW Rowe Price Mid-Cap Value fund. It is a value fund and is quite conservative. I am investing on a monthly basis via electronic transfer and started investing in this fund about three year ago. It does quite well when the market is in a downward trend since they are invested in value stocks. the only problem is that it is no longer open to the public. I iwll probably never sell this fund along with my dividend reinvestment stocks for a long time. They are just a money making mutual funds without too much risk.