BOSTON -- The Dow Jones industrial average climbed to a record last week, finally recovering to surpass its October 2007 high.
To the managers of a select group of mutual funds, that's not a big deal. They crossed the recovery milestone some time ago.They needed just two or three years to make up for the losses they incurred after the market peaked in October 2007. That's quick work, compared with the nearly five and a half years it took the Dow to return to its pre-crisis level of 14,164.Examine the records of the top-performing stock funds since that date, and one thing stands out: Nearly all were unusually successful at limiting their losses in 2008, when stocks plunged 38 percent.In a crisis, losing 30 percent was an acceptable result. It was achieved by the vast majority of the large-cap stock funds with the strongest overall results since October 2007, according to Morningstar. Twenty of the 30 top-performers posted 2008 losses of less than 30 percent.The best in the bunch since October 2007 lost just 5.1 percent the following year. Manager Frederick "Fritz" Reynolds of the Reynolds Blue Chip Growth fund (RBCGX) sensed trouble in the housing market and began selling stocks and holding onto cash as subprime mortgage troubles rippled into the stock market. When the recovery rally began in March 2009, Reynolds shifted back into stocks.Such good timing is often a matter of luck as much as skill, and Reynolds posted mixed results in 2009 through 2012.But the fund's 2008 result was so strong that Reynolds Blue Chip Growth possesses the top record among all large-cap stock funds since Oct. 9, 2007, according to Morningstar. The growth stock fund posted a total return of nearly 88 percent through Monday. That's a huge margin over the broader stock market.Here's a look at other top-performing funds since October 2007 in large-cap categories. They invest primarily in large U.S. companies, the types of stocks that typically anchor a well-diversified portfolio:Yacktman Focused (YAFFX) and Yacktman (YACKX): These two funds earned the top results in the large-cap blend category, posting returns of 75 percent and 68 percent, respectively. Yacktman Focused is a leaner version of its sibling, with slightly fewer stocks in its portfolio. There's plenty of overlap among the funds' top holdings. They're also managed by the same teams: Donald Yacktman, his son Stephen, and Jason Subotky. They tend to stick with their favorite stocks for years rather than make frequent trades. For example, both funds have owned shares of Coca-Cola and Pfizer for about a decade.SunAmerica Focused Dividend Strategy (FDSAX): This was the top performer among large-cap value funds, which primarily invest in stocks considered inexpensive relative to the earnings they generate. SunAmerica Focused Dividend Strategy posted a total return of nearly 37 percent. Although the fund narrowly edged out its peers in 2008, it beat 98 percent in 2009 and 99 percent in 2011. Brendan Voege has managed the fund since 2006, often holding onto his favorite dividend-paying stocks for several years. Pfizer, DuPont, Verizon and AT&T have been in the portfolio since 2006, for example.Have more to add? News tip? Tell us
