NEIMX - Neiman Large Cap Value Fund

NEIMX
Invests In:
Value stocks of large companies.
Key Statistic:
Very low standard deviation.

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It's difficult for most mutual funds to outperform the market average. However, some fund managers have the knowledge, discipline, and investor support to consistently generate great returns. The challenge for mutual fund investors is to find that superstar manager before the rest of the industry does.

There are a few reasons why NEIMX is a value fund to watch over the next few years.

Neiman Large Cap Value is a standout value fund that you've probably never heard of. The fund is relatively young, but has it performed very well since the fund began in 2003.

For starters, this fund has not taken many risks. The low beta shows exactly how defensive this fund has been.

Be aware of the expenses on this fund. The fund's management expenses are somewhat high (which is common for newer funds). The expense ratio was at 1.75% as of 3-31-09. High expenses can be a big turn-off for conservative investors, so it's worth keeping an eye on.

The assets in this fund are so small - $13.7 million - that any new assets should bring those management expenses down. That could turn this fund into a lean, mean value machine.

If you factor in the strong consumer-based portfolio, this fund could be ready to take off.

The fund's portfolio is designed to outperform after 5 years. With value stock indicators at historical lows over the past year, you can bet these managers have "stocked up" on their favorite value selections. The management has set the fund up for long-term gains by buying strong household companies like McDonald's, Procter & Gamble, and Costco.

Those are companies that Warren Buffett would be proud of.

That strength has paid off well for investors. The 5-year returns stand out over 96% of all other funds in the same category. The managers obviously know how to deliver impressive long-term returns.

This is a fund that bargain investors may want to hold on to for a long time. The longer the holding period, the higher the potential for great returns. Defensive funds generally perform better over the long term rather than over short periods of time.

NEIMX is not for every investor. It does have a short history and somewhat higher expenses. However, that doesn't mean we should forget it entirely.

Open-minded investors with lots of time, patience, and discipline should keep an eye on this fund. Especially if the fund continues to earn impressive returns. To invest in the fund, the best place to start is www.neimanfunds.com.

Fund information is provided by Morningstar.
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