DGHM All-Cap Value: A Great Fund You’ve Never Heard Of

With a record this good, this hidden gem won't stay undiscovered for long.

The sponsors of DGHM All-Cap Value (symbol DGHMX) picked a terrible time to launch their fund -- just four months before the worst bear market since the Great Depression. From the fund's inception on June 20, 2007, through May 27, it returned an annualized 3.9%. That doesn't sound especially impressive. But the fund has beaten its benchmark, the Russell 3000 Value index, by a whopping 7.2 percentage points per year, on average.

Over the past 25 years through March 31, the period for which DGHM has an audited record, private accounts using the firm's All-Cap Value strategy returned an annualized 12.4% before fees. That’s an average of 2.4 percentage points per year better than the Russell 3000 Value index, a broad-based index of statistically cheap stocks. Over the past ten years through March 31, it returned an annualized 9.5% before expenses, compared with 4.9% a year for the Russell index.

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Steven Goldberg
Contributing Columnist, Kiplinger.com
Steve has been writing for Kiplinger's for more than 25 years. As an associate editor and then senior associate editor, he covered mutual funds for Kiplinger's Personal Finance magazine from 1994-2006. He also authored a book, But Which Mutual Funds? In 2006 he joined with Jerry Tweddell, one of his best sources on investing, to form Tweddell Goldberg Investment Management to manage money for individual investors. Steve continues to write a regular column for Kiplinger.com and enjoys hearing investing questions from readers. You can contact Steve at 301.650.6567 or sgoldberg@kiplinger.com.