Over the course of the past 13 years, Westport Asset Management
has made a name for itself in the mid-cap mutual fund arena. According to a report on the firm’s website, one of its fund – Westport Fund, through September 30, 2010, returned 6.86, 10.68, -0.34, 5.02, 6.48, and 9.81% during the past YTD, 1-, 3-, 5-,10-years, and since inception of 12/31/1997. The performance beat its benchmarks (Russell Midcap Index or Lipper Multi-Cap Core Index) by large margins, especially during the long term.
Michael Breen of MorningStar had a favorable report
on the fund about one year ago. Breen discussed the Fund Manager’s investment strategy:
Manager Ed Nicklin is a long-term investor who likes firms compounding capital at high rates. He likes bargains but favors strong profitability over cheapness. The portfolio return on equity and net margin are 40% above the category average; its P/E is in line with it. The fund’s single-digit turnover rate implies a 10-year holding period, but Nicklin isn’t a buy-and-forget manager. He has consistently added value trading around existing names. Continue Reading »