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Value Funds typically are investing in stocks that are considered to be out of favor and thus have not had
much appreciation lately. These sectors may consist of heavy manufacturers like auto manufacturers, which
may have had a prolonged downturn. Throughout history, most sectors seem to come back most of the time. The
news is usually worse for these types of stocks at the lowest prices. Thus, when things seem to look like the
worst for them, it may be a good time to buy. With a long-term investment view, these stocks should perform well.
Warren Buffet may be considered the ultimate Value Investor. He tends to buy companies that will perform
well in the long run and not chase the high flyers. Technology stocks can also considered Value Stocks, depending
on current market conditions. If their prices have fallen substantially and they are out of favor, they could
be considered to have alot of Value.
Even though they are not chasing the latest hot market or fad, Value Funds have performed similar to
Growth funds overall. You have to make sure you invest in a Value Fund that has done well over the last 5 years
or so. Again, holding for the long run is probably the best advice when you buy a Value Mutual Fund.
Below are the links into websites that contain information on Value Mutual Funds:
Heartland Funds
From the founding of our flagship Heartland Value Fund in 1984, all of our Funds have been focused on this same time-tested, value-driven approach. We believe this is the most intelligent way to build portfolios. Value Funds Founded in 1982, NWQ Investment Management Company, LLC (NWQ) utilizes a value-driven investment strategy whose aim is to provide long-term capital appreciation. NWQ applies a bottom-up approach, relying on rigorous research to identify undervalued companies with perceived catalysts to improve profitability and unlock value. The research focus is to identify attractive but relatively inexpensive stocks with qualitative and quantitative strengths. We term this approach “opportunistic value investing”. Confessions of a mutual-fund junkie Now that I know what to watch for, I watch. When I made my 2005 Roth contribution, I saw that my portfolio had tilted heavily toward value-oriented funds. I decided to make a sizable exchange in my 401(k) and a few other Roth transfers to rebalance value funds with growth. Mutual Funds Quarterly: Time to set sail for growth? Smiling, perhaps, but hardly jumping for joy. That depicts the mood of most mutual-fund investors as year-end performance statements begin to fill millions of US mailboxes. Fund portfolios liberally laced with stocks in foreign and small companies, or specialized sectors produced solid returns in 2005. Investors who owned funds packed with large blue-chip companies, on the other hand, experienced lackluster results. HOW DO YOU CHOOSE YOUR INVESTMENT STRATEGY? The Style-Specific Equity Strategies focus on a particular investment style. Each style is defined by the investment disciplines employed by the mutual fund managers when selecting stocks for their equity portfolios. Funds in these strategies typically purchase stocks based on the size of their market capitalizations and their valuations.
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