BOSTON (MarketWatch) -- Karin Anderson, mutual fund analyst at Morningstar, says investors need to choose funds as much for the way they diversify a portfolio as for past results or their promise for the future.
In a radio interview with Chuck Jaffe, MarketWatch senior columnist, Anderson said that investors should not just be looking for buy recommendations but should be choosy to own funds that do not have significant overlap, keeping the number of holdings in a portfolio down and making the money easier to manage.
Anderson said that investors should look for low-cost funds with strategies that show some promise for repeating past success. Rather than simply adding another fund and creating overlap, Anderson suggested that investors may want to upgrade a portfolio when they find something better.
Anderson put buy recommendations on Perritt Microcap Opportunities /zigman2/quotes/207408664/realtime PRCGX +0.83% , Cambiar Opportunity /zigman2/quotes/209711246/realtime CAMOX +0.03% , Rainier Large Cap Equity , Oppenheimer Global A /zigman2/quotes/208070127/realtime OPPAX -0.38% , Manning & Napier World Opportunities and T. Rowe Price International Discovery /zigman2/quotes/206936003/realtime PRIDX -0.10% .
She also had a lukewarm buy on Marsico International Opportunity /zigman2/quotes/202647283/realtime MIOFX -0.18% , noting that she prefers Harbor International Growth /zigman2/quotes/200319905/realtime HIIGX -0.30% because it is run by the same management team, but has a better cost structure.
She also put a hold rating on Neuberger Berman Genesis /zigman2/quotes/206894170/realtime NBGEX +0.83% , Artisan Mid Cap /zigman2/quotes/206182161/realtime ARTMX +1.29% and SSgA Emerging Markets /zigman2/quotes/205784390/realtime SSEMX -0.29% .
In another interview, Charles Rotblut, senior market analyst for Zacks.com, said that Hain Celestial /zigman2/quotes/201324629/composite HAIN -0.98% -- which produces natural and organic food and personal-care products, including Celestial Seasonings -- has a growth pattern wildly different than most low-margin food companies. Rotblut noted that his firm has a six-month target price of $36.25 on the stock, which would represent a gain of about 38% from current levels.
Rotblut was bearish on LoopNet /zigman2/quotes/205873960/composite LOOP +0.39% , which he called overvalued, noting that the stock popped even after missing its earnings expectations recently, a sign that investors are overanxious. Rotblut noted that Zacks has a six-month target price on the stock of $11 per share, down roughly 15% from current levels.
Jaffe's radio show regularly features expert reviews of stocks and mutual funds suggested by MarketWatch readers; to request a stock or mutual fund for review, send your name, hometown and the ticker symbols that interest you to firstname.lastname@example.org .