The broad U.S. stock market has hit a rough patch the past few months, but growth stock mutual funds are so far holding up well in year-to-date and 10-year performance.
Let’s see what $10,000 would do. Invested in the average growth stock mutual fund on June 30, 2005, it would have grown to $24,110 by July 27 this year, according to Morningstar Inc. data. That’s just behind the $24,149 that would have built up in the average core fund, which invests in both growth and value stocks. But value funds would have limped in with $18,462.
Topping them all was the S&P 500, a proxy for the broad stock market, with $21,445.
Year to date, growth funds were out front with a gain of 8% vs. 2% for the S&P 500 and declines of 2% for value funds and 1% for core funds.
Lord Abbett Micro Cap Growth Fund has returned an average annual 13.66% the past 10 years vs. 7.51% for the S&P 500. The $162.8 million fund has been run by Matthew DeCicco since 2002, F. Thomas O'Halloran since 2006 and Arthur Weise since 2007. This year the fund has handed investors a gain of 10% vs. 2% for the S&P 500.
Recent holdings include Ambarella (AMBA), Taser International (TASR) and BJ’s Restaurants (BJRI).