The Only Mutual Fund to Beat Gold Since the Financial Crisis

Past performance is no guide to the future. But if you dont study history, just
what will you track instead? December 2011 marked the fifth anniversary of the
end of Ownit Mortgage Solutions a small lender in the big scheme, but maybe the
canary in the coalmine, according to one mortgage-backed security manager back
at the end of 2006. Lets hope he found a new career in short order. Because come
March 2007, tittle-tattle claimed that distress was spreading from the subprime
collapse to U.S. and Eurozone hedge funds. In July, news leaked and then broke
of the collapse of two hedge funds at Bear Stearns, and the permanent emergency
had begun. What fun lay ahead! With the gold price at just $650 per ounce, too!
Silver was knocking around $13 per ounce. Together, thats made for quite the
track record since. The Top U.S. Fund Managers: Annualized Returns Silver (1)
Gold No. of Funds Beating Top Precious (2) Top U.S. Mutual (3) Top Funds Return
Avg. Fund Return 10 years 20.08% 19.00% 11 USAGX 27.01% 0.63% 5 years 16.92%
20.03% 1 OSFDX 40.68% 0.63% 3 years 37.54% 21.88% 7 OSFDX 67.57% 11.64% 1 year
-8% 11.65% 195 GVPIX 44.31% -1.99% (1) Precious metals prices from the LBMA ,
periods ending 12/30/2011 (2) Fund count by BullionVault, using Lipper data via
WSJ Online (3) Single-best fund, best return & average return of all mutual
funds taken from Morningstar USAA Precious Metals & Minerals (MUTF: USAGX ) you
probably know. Co-manager Mark Johnson stepped down last month, leaving Dan
Denbow to continue running the single-best performing U.S. mutual of the past 10
years. Other big precious-metal miner funds pack the list of 11 mutuals to
outperform silver and gold. ProFunds US Government Plus (MUTF: GVPIX ) you might
expect to know too, what with it delivering 44% returns in calendar-year 2011.
GVPIX led a bunch of long Treasury-bond portfolios. The old Lehmans TLT tracker
returned 34% who needed active management, let alone risk, last year? But the
standout fund over both the past three and past five years? The only mutual to
beat gold for U.S. investors since the eve of this crisis is Oceanstone (MUTF:
OSFDX ). Dont feel cheated if youve never heard of it. Apparently it has less
than $15 million in assets, even though the minimum investment is $3,000. Its
stellar five- and three-year records include a ridiculous 264% made in 2009 ,
just from doing what it does seeking value in common stocks on the NYSE. Yes,
it can be done. And yes, it could be done again, too. U.S. investors really
could beat gold since the alarm bells rang out at the turn of 2007. Because out
of the 7,500 separate funds available with 22,000 shares classes to choose from
one fund managed it. Just like seven funds (go on, count em) managed to beat
silver since the turn of 2009, and fully 11 separate U.S. mutual funds managed
to beat silver since the start of 2002. Adrian Ash is head of research at
BullionVault .