Large-Cap Blend Funds

Large-cap blend funds invest in a mix of growth and value stocks within companies with market capitalizations typically exceeding $10 billion. These funds aim to balance stability (from established companies) with growth potential, making them suitable for investors seeking moderate risk and steady returns.

1. Permanent Portfolio Aggressive Growth (PAGRX)
   • 2024 Return: 44.5% | 5-Year: 21.8% | 10-Year: 12.7% | Expense Ratio: 1.2%
   • Inferred Strategy: The name suggests an aggressive growth focus, likely emphasizing stocks with high growth potential within large-cap firms, such as technology or consumer discretionary sectors. This fund may employ a concentrated portfolio, targeting undervalued companies with strong earnings growth, and could use tactical asset allocation to capitalize on market trends (e.g., AI or renewable energy booms in 2024). The high 2024 return indicates bold bets on growth stocks that outperformed during a volatile year, possibly amplified by active management.
   • Key Insight: The aggressive stance likely paid off in 2024’s selective growth environment, though the 1.2% expense ratio suggests higher management costs, which may reflect active trading or research.
2. Bridgeway Aggressive Investors 1 (BRAGX)
   • 2024 Return: 35.8% | 5-Year: 12.2% | 10-Year: 7.9% | Expense Ratio: 0.48%
   • Inferred Strategy: With a low expense ratio and “aggressive” in its name, BRAGX likely uses a quantitative or rules-based approach to identify undervalued large-cap stocks with growth potential. This could involve low-cost indexing with a tilt toward high-momentum or small-cap-like large-cap stocks (e.g., emerging tech giants). The strong 2024 return suggests it capitalized on market inefficiencies or sector rotations (e.g., energy or industrials).
   • Key Insight: The low expense ratio indicates a cost-efficient strategy, making it attractive for long-term investors despite a modest 10-year return.
3. Spirit of America Large Cap Value (SOAVX)
   • 2024 Return: 33.3% | 5-Year: 17.8% | 10-Year: 12.1% | Expense Ratio: 1.53%
   • Inferred Strategy: As a value-focused fund, SOAVX likely targets large-cap stocks trading below their intrinsic value, using fundamental analysis to identify firms with strong balance sheets or dividend potential. The solid 2024 return suggests it may have benefited from a value rebound, possibly in financials or healthcare, sectors that often outperform during economic recovery phases.
   • Key Insight: The higher expense ratio reflects active management, which likely honed in on undervalued opportunities in 2024.
4. Hodges Blue Chip Equity Income (HDPBX)
   • 2024 Return: 32.1% | 5-Year: 15.3% | 10-Year: 12.8% | Expense Ratio: 1.30%
   • Inferred Strategy: This fund focuses on blue-chip stocks (stable, well-established companies) with a tilt toward income generation, likely through dividend-paying stocks. The strategy may involve a blend of growth and income, targeting firms with consistent cash flows (e.g., consumer staples or utilities). The 32.1% return indicates it may have also captured growth in high-dividend sectors during 2024’s market upswings.
   • Key Insight: The income focus provides stability, while growth opportunities boosted its 2024 performance.
5. Federated Hermes MDT All Cap Core (QAACX)
   • 2024 Return: 30.7% | 5-Year: 17.0% | 10-Year: 13.3% | Expense Ratio: 1.05%
   • Inferred Strategy: As an all-cap core fund, QAACX likely employs a multi-cap approach, blending large-, mid-, and small-cap stocks to diversify risk and capture growth. The MDT (Money, Discipline, and Thought) methodology suggests a data-driven, disciplined investment process, possibly using quantitative models to select stocks with strong fundamentals. The 30.7% return reflects a balanced strategy that thrived in 2024’s mixed market.
   • Key Insight: The all-cap approach and moderate expense ratio highlight a versatile strategy adaptable to various market conditions.

Mid-Cap Blend Funds

Mid-cap blend funds target companies with market caps between $2 billion and $10 billion, offering a mix of growth and value with higher risk than large-caps but more stability than small-caps.

1. Schabitz Value Focused (RCMFX)
   • 2024 Return: 38.7% | 5-Year: 20.0% | 10-Year: 11.9% | Expense Ratio: 1.26%
   • Inferred Strategy: This fund’s value focus suggests it targets mid-cap companies undervalued relative to their earnings or assets, using fundamental analysis. The exceptional 38.7% return indicates it may have identified turnaround stories or sectors like manufacturing or technology that surged in 2024.
   • Key Insight: The high return with a reasonable expense ratio points to skillful stock-picking in a value-driven market.
2. Gotham Enhanced Return (GENIX)
   • 2024 Return: 28.0% | 5-Year: 12.6% | 10-Year: 9.4% | Expense Ratio: 1.50%
   • Inferred Strategy: The “enhanced return” name implies an active, possibly quantitative strategy, such as long/short equity or leveraging market-neutral techniques to boost returns. This fund may use sophisticated algorithms to exploit market inefficiencies in mid-cap stocks, contributing to its 28.0% gain.
   • Key Insight: The higher expense ratio reflects the complexity of the strategy, which paid off in 2024.
3. Kirr Marbach Partners Value (KMVAX)
   • 2024 Return: 27.9% | 5-Year: 11.4% | 10-Year: 8.0% | Expense Ratio: 1.46%
   • Inferred Strategy: A value-oriented fund, KMVAX likely focuses on mid-cap firms with strong fundamentals but low market prices. The 27.9% return suggests it capitalized on undervalued stocks in sectors like industrials or consumer goods during 2024’s recovery.
   • Key Insight: Consistent value investing delivered solid short-term gains.
4. FullerThaler Behavioral Unconstrained Equity (FTZAX)
   • 2024 Return: 25.0% | 5-Year: 13.2% | 10-Year: N/A | Expense Ratio: 1.30%
   • Inferred Strategy: The “behavioral unconstrained” label indicates a strategy based on behavioral finance, exploiting investor biases to select mid-cap stocks. The “unconstrained” aspect suggests flexibility to invest across sectors or styles, avoiding traditional benchmarks. The 25.0% return reflects adaptability to 2024’s unique market dynamics.
   • Key Insight: Behavioral insights and flexibility were key to its success.
5. Carillon Scout Mid Cap (UMBMX)
   • 2024 Return: 23.1% | 5-Year: 11.1% | 10-Year: 10.6% | Expense Ratio: 0.95%
   • Inferred Strategy: This fund likely follows a balanced blend approach, mixing growth and value mid-cap stocks with a focus on long-term growth. The low expense ratio and steady 10-year return suggest a cost-efficient, diversified portfolio that benefited from sector rotation in 2024.
   • Key Insight: A conservative blend strategy provided reliable returns.

Small-Cap Blend Funds

Small-cap blend funds invest in companies with market caps under $2 billion, offering high growth potential with increased volatility.

1. Hennessy Cornerstone Growth (HFCGX)
   • 2024 Return: 31.6% | 5-Year: 17.8% | 10-Year: 10.4% | Expense Ratio: 1.33%
   • Inferred Strategy: A growth-focused fund, HFCGX likely targets small-cap companies with high earnings potential, such as tech startups or biotech firms. The 31.6% return suggests it capitalized on a small-cap rally, possibly in innovative sectors.
   • Key Insight: Aggressive growth bets drove its standout performance.
2. Private Capital Management Value (VFPIX)
   • 2024 Return: 31.3% | 5-Year: 16.6% | 10-Year: 10.2% | Expense Ratio: 1.21%
   • Inferred Strategy: This value fund likely seeks undervalued small-cap stocks with strong fundamentals. The 31.3% return indicates it found hidden gems in sectors like manufacturing or retail during 2024.
   • Key Insight: Value investing in small-caps yielded significant gains.
3. WesMark Small Company Fund (WMKSX)
   • 2024 Return: 22.2% | 5-Year: 14.3% | 10-Year: 9.5% | Expense Ratio: 1.23%
   • Inferred Strategy: A broad small-cap approach, WMKSX likely diversifies across growth and value stocks, focusing on long-term potential. The 22.2% return reflects steady performance in a volatile category.
   • Key Insight: Diversification mitigated risk while capturing growth.
4. Madison Small Cap (BVAOX)
   • 2024 Return: 21.9% | 5-Year: 9.7% | 10-Year: 7.5% | Expense Ratio: 1.10%
   • Inferred Strategy: This fund may blend growth and value small-cap stocks with a conservative tilt, focusing on stability. The 21.9% return suggests it benefited from selective stock picks in 2024.
   • Key Insight: A balanced approach worked in a turbulent year.
5. Horizon Multi-Factor Small/Mid Cap (HSMNX)
   • 2024 Return: 21.7% | 5-Year: N/A | 10-Year: N/A | Expense Ratio: 1.09%
   • Inferred Strategy: Using a multi-factor model (e.g., value, momentum, quality), HSMNX likely optimizes small- and mid-cap stock selection based on quantitative metrics. The 21.7% return reflects the effectiveness of this data-driven approach.
   • Key Insight: Multi-factor strategies provided resilience and growth.

Common Themes and Strategic Insights

• Adaptability: Funds like PAGRX and FTZAX thrived by adapting to 2024’s market conditions, whether through aggressive growth or unconstrained flexibility.
• Value Resurgence: Value-focused funds (e.g., RCMFX, VFPIX) outperformed, suggesting a shift toward undervalued stocks amid volatility.
• Quantitative Edge: Funds like GENIX and HSMNX leveraged data-driven strategies, highlighting the growing role of technology in fund management.
• Cost Efficiency: Lower expense ratios (e.g., BRAGX at 0.48%) correlated with strong net returns, underscoring the importance of cost management.

Our opinion

The success of these funds in 2024 reflects a combination of strategic foresight, active management, and alignment with market trends. Whether through aggressive growth, value investing, or multi-factor models, each fund leveraged its unique approach to navigate a challenging year. Investors can draw lessons from these strategies, balancing risk, cost, and performance to build resilient portfolios for 2025 and beyond.