Taurus Discovery (Midcap) Fund - Growth Option INF044D01815

Taurus Discovery(Midcap) earns a Low Process Pillar rating.

The main detractor from the rating is the fund's unremarkable long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the process has struggled over that period. The parent firm's inferior risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 2.4 stars, also holds the process back. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis. The parent firm's five-year risk-adjusted success ratio of 31% further hinders the process. The measure indicates the percentage of a firm's funds that have outperformed their respective category's median return for the period. The parent's subpar success ratio suggests that the firm could do better across its fund lineup.

This strategy prefers smaller market-cap companies compared with the average fund in its peer group, the Mid-Cap Morningstar Category. But in terms of style (value/growth) exposure, it is similar. Examining additional factor exposure, the managers have continually shown a willingness to take risks over the last few years, demonstrated by the portfolio's high volatility exposure. This contributes to a higher-risk, higher-reward approach. Different from its historical appetite, however, the strategy was less exposed to the Volatility factor compared with Morningstar Category peers in the most recent month. This strategy has also exhibited an overweight liquidity risk tilt, evidenced by holding companies with relatively lower trading volumes than peers in these years. Less-liquid stocks might offer strong returns to compensate for their risks, but they can be harder and more expensive to trade in bear markets. Similarly, in recent months, the strategy also had less exposure to the Liquidity factor than peers. Additionally, the strategy had less exposure to high-quality stocks compared with Morningstar Category peers in recent months. Lacking this ballast, the fund's prospects could rest on its ability to surpass peers during economic booms. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section.

The portfolio is overweight in financial services and communication services relative to the category average by 6.5 and 5.8 percentage points, respectively. The sectors with low exposure compared with category peers are consumer defensive and technology, underweight the average by 3.1 and 3.1 percentage points of assets, respectively. The portfolio is positioned across 51 holdings and is quite concentrated. More concretely, 36.1% of the fund’s assets are housed within the top 10 holdings, compared to the category average of 23.2%. And finally, in terms of portfolio turnover, looking at year-over-year movements, 113% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.