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The reason to write about it now, responding to the OP, is that for almost 6y it has consistently behaved differently from (similar to but better than) SP500 vehicles, ditto for CAPE, and also differently from actively managed (stockpicker) LV funds.
Presumably, weasel word, if past is any guideline. in a bear market it will do similarly.
In other words, when you graph ($10k growth) of it vs CAPE and VFINX for the six months from last Sept 20 to last March 20, it tracks that sharp decline exactly but slightly worse, meaning the Christmas low point is down almost $2k to $8k (20 bucks short), whereas the CAPE loss was slightly less and VFINX went to $8124 only, not quite as bad.
Then for the comeback it lagged slightly until February, and by March 20 both DSEEX and CAPE pull ahead of VFINX, a little, with DSEEX slightly ahead of CAPE. Breakeven for all back to $10k was around April 4.
Morningstar used to say that the fund category was something that they changed very slowly, as opposed to the current style box which changed as new portfolios were published. So that they would wait and see whether a fund were actually changing its stripes or just making some shorter term adjustments. I'm reasonably confident that this is still what they do, I just can't find a quote right now.
The point is that a fund category designation does not change with the direction of the wind. It is supposed to reflect a long term (read three year) broad picture of how a fund invests.
What I can find:
Morningstar engages in a formal category review process twice each year, in May and November [hence the update now] ...
The process begins with a quantitative filter that proposes category recommendations based upon the three-year trailing portfolio statistics, which are calculated from an investment’s reported holdings. ... Our research team uses a mosaic approach when performing our qualitative assignment. Their decision is based on many factors, including, but not limited to: familiarity with the strategy of the portfolio managers and fund family, their understanding of current market forces, an appreciation for alternative strategies which may not be borne out adequately in our statistical calculations, and a desire to portray the most accurate picture of economic exposure possible. ...
Category changes are sent to the fund’s advisor with ample time to challenge our opinion, and provide contravening information in a category appeal.
I notice Morningstar has DSENX listed as a large blend now
Yes, see @msf's first post of June 25 for a thorough review of holdings and valuations; including his opinion that "a fund that maintains a steady 50% exposure to technology and healthcare (combined) is no value fund."
Comments
Presumably, weasel word, if past is any guideline. in a bear market it will do similarly.
In other words, when you graph ($10k growth) of it vs CAPE and VFINX for the six months from last Sept 20 to last March 20, it tracks that sharp decline exactly but slightly worse, meaning the Christmas low point is down almost $2k to $8k (20 bucks short), whereas the CAPE loss was slightly less and VFINX went to $8124 only, not quite as bad.
Then for the comeback it lagged slightly until February, and by March 20 both DSEEX and CAPE pull ahead of VFINX, a little, with DSEEX slightly ahead of CAPE.
Breakeven for all back to $10k was around April 4.
The point is that a fund category designation does not change with the direction of the wind. It is supposed to reflect a long term (read three year) broad picture of how a fund invests.
What I can find: https://morningstardirect.morningstar.com/clientcomm/Morningstar_Categories_US_April_2016.pdf
Regards,
Ted