There are plenty of choices in the Mid Cap Growth category, but where should you start your research? Well, one fund that might be worth investigating is Carillon Eagle Mid Cap Growth R6 (HRAUX). HRAUX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
We note that HRAUX is a Mid Cap Growth fund, and this area is also loaded with many different options. Companies are usually considered growth stocks when they consistently report notable sales and/or earnings growth. Thus, Mid Cap Growth funds pick stocks–usually companies with a market cap between $2 billion and $10 billion–that demonstrate extensive growth opportunities for investors compared to their peers.
History of Fund/Manager
Carillon is based in St. Petersburg, FL, and is the manager of HRAUX. Since Carillon Eagle Mid Cap Growth R6 made its debut in August of 2011, HRAUX has garnered more than $2.86 billion in assets. The fund is currently managed by a team of investment professionals.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 2.5%, and is in the middle third among its category peers. If you’re interested in shorter time frames, do not dismiss looking at the fund’s 3-year annualized total return of 11.66%, which places it in the middle third during this time-frame.
It is important to note that the product’s returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund’s [%] sale charge. If sales charges were included, total returns would have been lower.
When looking at a fund’s performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. HRAUX’s standard deviation over the past three years is 17.58% compared to the category average of 12.9%. Over the past 5 years, the standard deviation of the fund is 19.33% compared to the category average of 14.68%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should note that the fund has a 5-year beta of 1.12, which means it is hypothetically more volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio’s performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. HRAUX has generated a negative alpha over the past five years of -10.5, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
