The best sector so far in 2014 is energy with top performer ProFunds Oil Equipment, cranking out a gain of 34.6%. Not only is TGLDX the best in this category, it is the top-performing mutual fund in the entire investment universe in the first six months of 2014. Therefore, Hennessy’s out-performance appears to be just good old-fashioned portfolio management, as opposed to luck or timing.Īlthough gold is not by definition a “sector” (it is a commodity or alternative asset), the precious metal receives the top-performing honor in this group with Tocqueville Gold, which benefited from a rebound in gold prices to return an impressive 36.7% at midyear. Also, the fund has an oversized allocation to consumer cyclicals and industrial stocks, combining for roughly two-thirds of the portfolio, and these sectors as a group are under-performing the S&P 500 year-to-date. It is a standout because midcap stocks as a group are lagging the S&P 500 in 2014. The Hennessy fund appears to benefit purely by superior stock selection. With that said, investors should be cautioned that this is an asset allocation fund, which means it has a “go anywhere” management style and performance can be inconsistent. VAGFX’s assets under management are only $22 million, which is tiny in the world of mutual funds, but also an advantage when trying to quickly navigate the complexities of today’s stock market. Top performers among domestic stock funds, which includes all market caps, are Valley Forge Fund, a large value fund, with a return of 18.8%, and Hennessy Cornerstone, a midcap blend fund, putting in 15.2% through June 30.Ĭontributors to the Valley Forge Fund’s performance include top holdings in financial stocks such as American International Group ( AIG), and technology sector holdings with outstanding 2014 performance such as Apple ( AAPL). equity, international stock, sector and bond funds. These still are the days of ideal market conditions.īesides, if you do think the market is boring now, be thankful - exciting does not by default translate into positive in the investment universe.Īll that said, if you do enjoy something more exciting than what the market has returned so far, here’s our look at a few outliers - namely, some of the best mutual funds through six months, broken out into U.S. The top performing mutual funds of 2014 through June 30 include a few surprises, as well as some clues about where the market might be heading in the second half of the year.įor reference - and what might be considered our first surprise in light of the cautious investor sentiment pervading the market at mid-year - the S&P 500 Index has climbed an impressive 7.1%.Īlthough investors might yawn about such gains in comparison to the 25%-plus returns in the past few years, if we project this return forward, it adds up to an annualized 14.2% return for 2014.