It is often the case that funds that do well in bull markets lag in bear markets and funds that outperform in bear markets struggle in bull markets. A recent Forbes analysis, appearing in the May 2014 issue, identified funds that have done well in both market environments. Editors considered the performance of funds that have been in existence for two full cycles of up and down markets (942 funds buying predominantly U.S. stocks; funds with less than $50 million of assets were excluded).
Past performance does not guarantee future results. Forbes’ Honor Roll is a short list of funds that have done well in both bull and bear markets, earning a grade A and better. Forbes’ evaluated 942 funds for their Honor Roll based on the following criteria: a compound annual return over the last two market cycles (since August 31, 2000) or at least 10% and a minimum investment no higher than $50,000. Sector funds and funds managed by anonymous portfolio managers or large committees were excluded. Raw performance data came from Lipper and Morningstar.