Federated Hermes Inc., listed on the New York Stock Exchange as FHI, was established in 1955. It has overseas assets worth $757.6 billion. Federated Hermes provides a diverse range of investment options, such as stocks, mutual funds, bonds, alternative investments, private markets, diversified assets and cash management. With a client base exceeding 10,000 client firms, Federated Hermes serves sectors, including businesses, government bodies, insurance firms and financial intermediaries. It is headquartered in Pittsburgh, with branches in cities like London, New York City and Boston. These aspects make Federated Hermes a reliable choice for investment.
Investing in Federated Hermes mutual funds seems to be judicious as of now. Also, mutual funds, in general, diversify portfolios without several commission charges that are mainly associated with stock purchases and trim transaction costs (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
We have, thus, chosen three Federated Hermes mutual funds that investors should buy now for the long term. These funds possess a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000, and expense ratios considerably lower than the category average. So, these funds have given a comparatively strong performance along with lower fees.
Federated Hermes MDT Mid Cap Growth Fund FGSKX invests most of its assets in mid-cap investments. FGSKX advisors choose mid-cap companies as those similar in size to the ones on the Russell Midcap Growth Index.
Damien Zhang has been the lead manager of FGSKX since Aug 7, 2018. Most of the fund’s holdings were in companies like Ameriprise Financial, Inc. (3.8%), CrowdStrike Holdings, Inc. (3.3%) and Spotify Technology S.A. (3.1%) as of Apr 30, 2024.
FGSKX’s 3-year and 5-year annualized returns are 3.8% and 12.3%, respectively. Its net expense ratio is 0.83%. FGSKX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Federated Hermes MDT Market Neutral Fund QAMNX aims to attain its goal by choosing long positions in publicly traded common stocks that its quantitative model forecasts will surpass market returns, as well as short positions in publicly traded common stocks anticipated by the fund’s quantitative model to achieve below-market returns.
John Paul Lewicke has been the lead manager of QAMNX since Sep 27, 2021. Most of the fund’s holdings were in companies like Federated Hermes, Inc. (6%), AbbVie Inc. (2.6%) and Spotify Technology S.A. (2.5%) as of Mar 30, 2024.
QAMNX’s 3-year and 5-year annualized returns are 12.2% and 9.1%, respectively. Its net expense ratio is 0.07%. QAMNX has a Zacks Mutual Fund Rank #1.
Federated Hermes MDT All Cap Core Fund QKACX invests its assets in the common stock of U.S. companies. QKACX advisors employ a comprehensive all-cap/all-style strategy, primarily selecting investments from firms listed on the Russell 3000 Index.
Frederick L. Konopka has been the lead manager of QKACX since Aug 31, 2008. Most of the fund’s holdings were in companies like Microsoft Corp (5%), Apple Inc. (4.9%), and AbbVie Inc. (3.1%) as of Apr 30, 2024.
QKACX’s 3-year and 5-year annualized returns are 11.5% and 16.2%, respectively. Its net expense ratio is 0.12%. QKACX has a Zacks Mutual Fund Rank #2.
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