Is Wasatch Ultra Growth (WAMCX) a good mutual fund choice right now?
HHaving trouble finding a mutual fund equity ratio fund? Wasatch Ultra Growth (WAMCX) is a possible starting point. WAMCX carries a Zacks mutual fund ranking of 3 (Hold), which is based on nine predictor factors such as size, cost, and past performance.
Wasatch is based in Salt Lake City, UT, and is the director of WAMCX. Wasatch Ultra Growth debuted in August 1992, and since then WAMCX has accumulated approximately $1.07 billion in assets, according to the most recent date available. The fund is currently managed by John Malooly who has been in charge of the fund since January 2012.
Investors are naturally looking for high performance funds. This fund has a 5-year annualized total return of 13.91% and ranks in the top third of its peers in the category. If you’re interested in shorter timeframes, don’t overlook the fund’s 3-year annualized total return of 7.4%, which puts it in the top third over that time frame.
When looking at a fund’s performance, it’s also important to note the standard deviation of returns. The lower the standard deviation, the less volatility the fund experiences. Over the past three years, WAMCX’s standard deviation stands at 27.8%, compared to a category average of 19.91%. Looking at the past 5 years, the standard deviation of the fund is 24.94% compared to the category average of 17.93%. This makes the fund more volatile than its peers over the past half-decade.
Investors should note that the fund has a 5-year beta of 1.18, so it is likely to be more volatile than the market as a whole. Since alpha represents the performance of a portfolio on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, it is also worth paying attention to this measure. WAMCX has generated a positive alpha of 2.03 over the past five years, demonstrating that the managers of this portfolio are adept at picking stocks that outperform the benchmark.
Investigating the stock holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as whether there are any inherent biases in their approach. For this particular fund, the focus is primarily on stocks that are traded in the United States.
The mutual fund currently holds 77.02% of its holdings in stocks, which have an average market capitalization of $7 billion. The fund has the highest exposure to the following market sectors:
As competition intensifies in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low cost product will perform better, all other things being equal. Thus, it is essential for investors to take a closer look at the cost parameters. In terms of fees, WAMCX is a no-fee fund. It has an expense ratio of 1.17% compared to the category average of 1.19%. Cost-wise, WAMCX is actually cheaper than its peers.
This fund requires a minimum initial investment of $2,000, and each subsequent investment must be at least $100.
Overall, Wasatch Ultra Growth (WAMCX) has a neutral Zacks Mutual Fund ranking, and in conjunction with its relatively strong performance, worse downside risk, and lower fees, this fund currently looks like a somewhat average choice. for investors.
This might just be the start of your search for WAMCX in the Mutual Fund Stock Report category. Consider going to www.zacks.com/funds/mutual-funds for more information on this fund, and all the others we rank for additional information as well. If you also want to check out our stock reports, be sure to go to Zacks.com to see all the great tools we have to offer, including our proven Zacks Ranking.
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