Federated Hermes is a global investment management firm with over 71 years of experience managing mutual funds and developing investment strategies for equities, fixed income and money market securities. With $912 billion in assets under management for 11,000+ clients in over 200 countries as of June 30, 2026, Federated Hermes offers investment management to global institutional, financial intermediary and individual investors.
Federated Hermes offers a range of equity strategies including growth, dividend and small-cap, as well as global equity portfolios and fixed-income portfolios of varying credit quality, including global, international, and domestic fixed-income portfolios along various parts of the yield curve. The firm also offers many money market and liquidity management portfolios as well as private market strategies, including private equity, private debt, infrastructure and real estate. In evaluating investments, Federated Hermes uses a variety of fundamental research, financial analysis and risk assessment. The firm considers some financially relevant sustainability factors in addition to traditional financial metrics, making them reliable investment options.
We have picked three Federated Hermes mutual funds — Federated Hermes Strategic Div Gr LEIFX, Federated Hermes Capital Income CAPAX and Federated Hermes MDT Mid Cap Growth FGSAX — which investors should buy now for the long term. These funds have a Zacks Mutual Fund Rank #1 (Strong Buy) or Rank 2 (Buy), with 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 provided a comparatively stronger performance and carry a lower fee.
Federated Hermes Strategic Div Gr fund invests primarily in income-producing and income-growing equity securities that the adviser believes can appreciate in capital and seek total return.
Richard Wallach has been the lead manager of LEIFX since July 18, 2025. Most of the fund’s holdings were in companies such as Darden Restaurants, Inc. (3.4%), Paychex, Inc. (3.2%) and AbbVie Inc. (3.2%) as of May 31, 2026.
LEIFX’s 3-year and 5-year annualized returns are 15.4% and 8.7%, respectively. Its net expense ratio is 1.12%. LEIFX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category, and other 1 (Strong Buy) and 2 Ranked Mutual Funds,please click here.
Federated Hermes Capital Income fund seeks high current income by investing primarily in a mix of equity and fixed-income securities with high income potential.
Ihab L. Salib has been the lead manager of CAPAX since May 13, 2013. Most of the fund’s holdings were in companies such as nLIGHT, Inc. (6%),Vicor Corp (4.9%) and Vertiv Holdings Co (4.2%) as of March 31, 2026.
CAPAX’s 3-year and 5-year annualized returns are 11.7% and 5.2%, respectively. Its net expense ratio is 0.88%. CAPAX has a Zacks Mutual Fund Rank #1.
Federated Hermes MDT Mid Cap Growth fund invests primarily in common stock of domestic mid-cap companies with superior growth prospects and may also invest in REITs.
Frederick L. Konopka has been the lead manager of FGSAX since Jan. 1, 2013. Most of the fund’s holdings were in companies such as Vertiv Holdings Co (5.9%), Howmet Aerospace Inc. (4.5%) and Ameriprise Financial, Inc. (3.8%) as of April 30, 2026.
FGSAX’s 3-year and 5-year annualized returns are 18.4% and 7.6%, respectively. Its net expense ratio is 1.15%. FGSAX has a Zacks Mutual Fund Rank #1.