Fund overview
Blue Chip Investor Fund ("The Fund") (ticker BCIFX) is an active equity mutual fund in United States "primarily investing in the common stocks of industry-dominant companies whose earnings have demonstrated superior growth" (Eikon). Having been launched since January 1, 2002 with the minimum investment of $5,000 USD, The Fund has its nominated benchmark index is the S&P 500 Total Return Index (Eikon code SPXTR).
The Fund was established by Steven Check (past President of the CFA Society of Orange County) and operated by the Investment Advisor, Check Capital Management (CCM) (founded by Mr. Check in 1987). Steven Check remains responsible for overall investment policy and portfolio management as CCM 's President and Chief Investment …show more content…
The S&P 500 TR Index also witnessed this trend with a noticeable decrease in total return (from 13.69% in 2014 to 1.38% in 2015). The year 2015 was a mixed year for the stock market with an unexpected decline in prices of the commodity, especially oil, continuously dollar strengthen, currency devaluation in China as well as interest rates raising of Federal Reserve at the last week of the year (Vito J. Racanelli, 2015). Nearly a half of the S&P 500 gained profits while the other half lost, particularly, energy and natural-resource firms were the biggest losers with one-third value losses (Annual report, …show more content…
The year 2012 saw the significant recovery of the economy; with the evidences are the double-digit gains of stock market (i.e. NASDAQ at 15.9%, Russell 2000 at 14.6%, the S&P 500 at 13.4%) (Adam Shell, 2012), which leads to the strong increase in total return of the Fund (17.49% in 2012, 28.63% in 2013 and 12.64% in 2014).
It is extremely risky to invest a considerable portion of the Fund 's assets in a particular sector (i.e. financials), as companies in this sector may be negatively influenced with regulatory and policy changes, economic recession, etc., which means that the performance of the Fund will also be affected. It would be suggested that the Fund invest more in other potential sectors, namely aerospace & defense (with the potential growth due to the increases in nations ' defense budget, as a result of global security threat), or telecommunication (mobile device and related broadband is irreplaceable in daily
Blue Chip Investor Fund ("The Fund") (ticker BCIFX) is an active equity mutual fund in United States "primarily investing in the common stocks of industry-dominant companies whose earnings have demonstrated superior growth" (Eikon). Having been launched since January 1, 2002 with the minimum investment of $5,000 USD, The Fund has its nominated benchmark index is the S&P 500 Total Return Index (Eikon code SPXTR).
The Fund was established by Steven Check (past President of the CFA Society of Orange County) and operated by the Investment Advisor, Check Capital Management (CCM) (founded by Mr. Check in 1987). Steven Check remains responsible for overall investment policy and portfolio management as CCM 's President and Chief Investment …show more content…
The S&P 500 TR Index also witnessed this trend with a noticeable decrease in total return (from 13.69% in 2014 to 1.38% in 2015). The year 2015 was a mixed year for the stock market with an unexpected decline in prices of the commodity, especially oil, continuously dollar strengthen, currency devaluation in China as well as interest rates raising of Federal Reserve at the last week of the year (Vito J. Racanelli, 2015). Nearly a half of the S&P 500 gained profits while the other half lost, particularly, energy and natural-resource firms were the biggest losers with one-third value losses (Annual report, …show more content…
The year 2012 saw the significant recovery of the economy; with the evidences are the double-digit gains of stock market (i.e. NASDAQ at 15.9%, Russell 2000 at 14.6%, the S&P 500 at 13.4%) (Adam Shell, 2012), which leads to the strong increase in total return of the Fund (17.49% in 2012, 28.63% in 2013 and 12.64% in 2014).
It is extremely risky to invest a considerable portion of the Fund 's assets in a particular sector (i.e. financials), as companies in this sector may be negatively influenced with regulatory and policy changes, economic recession, etc., which means that the performance of the Fund will also be affected. It would be suggested that the Fund invest more in other potential sectors, namely aerospace & defense (with the potential growth due to the increases in nations ' defense budget, as a result of global security threat), or telecommunication (mobile device and related broadband is irreplaceable in daily