A Mid-Cap Investor is Thinking Bigger

This Perkins Mid Cap Value fund manager is finding good values in large-company stocks. He shares four stock picks and his economic outlook for 2011.

Much has been made of the past ten years being a lost decade for stock investors. Don’t tell that to shareholders of Perkins Mid Cap Value (symbol JMCVX). Over the past ten years through January 25, the fund returned an annualized 9.5%. According to Morningstar, that beat the typical fund investing in undervalued, midsize companies by an average of 2.3 percentage points per year. Perkins even managed to return 5.6% annualized over the past three years, no easy feat considering that the period includes the stock market’s miserable performance in 2008 during which the fund lost 27.3%.

Both Perkins and the overall market have recovered impressively since stock prices bottomed in March 2009. Can the party continue in 2011? We checked in with Jeff Kautz, chief investment officer of Perkins Investment Management and a co-manager of Mid Cap Value since 2002, for his take. Here’s an edited transcript of our conversation:

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Jennifer Schonberger
Staff Writer, Kiplinger's Personal Finance