If investors are looking at the Large Cap Growth fund category, Harbor Capital Appreciation Retirement (HNACX) could be a potential option. HNACX possesses a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
HNACX is classified in the Large Cap Growth segment by Zacks, an area full of possibilities. Companies are usually considered to be large-cap if their stock market valuation is more than $10 billion. Large Cap Growth mutual funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers.
Harbor Funds is based in Chicago, IL, and is the manager of HNACX. Harbor Capital Appreciation Retirement made its debut in March of 2016, and since then, HNACX has accumulated about $10.07 billion in assets, per the most up-to-date date available. The fund is currently managed by a team of investment professionals.
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 17.96%, and it sits in the top 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 9.23%, which places it in the top 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. Over the past three years, HNACX’s standard deviation comes in at 22.84%, compared to the category average of 15.71%. The fund’s standard deviation over the past 5 years is 23.48% compared to the category average of 16.65%. This makes the fund more volatile than its peers over the past half-decade.
The fund has a 5-year beta of 1.24, so investors should note that it is hypothetically more volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio’s performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. The fund has produced a negative alpha over the past 5 years of -3.06, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
