Kiplinger Magazine recognizes Chicken Little Growth Fund
Kiplinger Magazine, a leading personal finance publication, ranks Chicken Little Growth Fund (“CHKNX”) the #1 Large Cap Mutual Fund in the United States for the one year period ending August 21.
Chicken Little Growth Fund, a St. Louis-based mutual fund is ranked #1 out of 1,691 funds with a one-year return of 41.90 percent.
“Our goal is to deliver robust double-digit annual returns, regardless of general market conditions,” said Stephen M. Coleman, fund manager who founded Chicken Little Growth Fund last year. “Of course, the fund could have losses. There are no guarantees.”
The ALPHA Strategy is the investment methodology Coleman used to deliver the results. The ALPHA Strategy essentially means, “Be Focused, Be Patient, and Be Right.” Initially, fifty-percent of the Fund’s assets were concentrated in three stocks – Apple Computer (25 percent of assets), Pixar Animations Studios (18 percent of assets) and Caterpillar (7 percent of assets).
“We succeeded because we are non-diversified. Fifty-percent of the portfolio was three stocks for most of the past year. These stocks became “the market” to the shareholders of Chicken Little Growth Fund. We redefined what ‘the market’ means for our shareholders. As these three stocks go, so goes our portfolio,” said Coleman.
In January, Pixar announced that it would be acquired by Walt Disney Company for $7.4 Billion. Pixar was sold by the Fund and Advanced Micro Devices was added to the Alpha Side of the portfolio with a 10 percent allocation. Advanced Micro Devices began as a 2 percent of assets allocation on the Market Side of the portfolio. Because AMD performed very well, it was promoted to the ALPHA Side. Caterpillar’s allocation was increased to 15 percent of assets. Apple maintained a 25 percent allocation.
“The ALPHA side of the portfolio is where we expect to achieve high growth regardless of what the market is doing,” said Coleman.
“The ALPHA Strategy investment methodology accepts the fact that it takes time for a business to fully implement its strategy. The business model driving that strategy could remain viable for many years, even a decade. For example, Apple Computer entered the digital music business with the launch of the iPod MP3 player on October 1, 2001. Almost five years later, the digital music business generally and the iPod/iTunes franchise specifically still seem viable today,” Coleman said.
This is the second #1 ranking for Chicken Little Growth Fund. Morningstar, a leading researcher of mutual funds and investment advisors, ranked Chicken Little Growth Fund the #1 Mutual Fund in the nation in the Large Cap Growth category out of 1,721 Funds for the three-month period ending December 31, 2005.
Chicken Little Growth Fund (“CHKNX”) recently celebrated its one-year anniversary as a Fund. Chicken Little Growth Fund (“CHKNX”) is currently available on the following national platforms: Charles Schwab, T.D. Ameritrade, Scottrade, Pershing, Bear Stearns and Vanguard.