Tuesday, July 10, 2012

Can't count on your fund manager

Gotcha! Found this on the WSJ this morning. This sort of stuff was routine and didn't pass my notice when I was an analyst in this business. Facebook is such a public example.

The takeaway? These fund managers cannot be counted on (almost wanted to say cannot be trusted) to practice what they preach. The polite term is called investment style drift.

I avoid actively managed funds. If you can't pick stocks, picking fund managers is even harder.

1 comment:

  1. The next few months will tell whether money-market funds continue to play a central role in our finances.