A lot of shareholders are more educated about expenses. That's why they've been migrating to lower-cost funds?They understand higher expenses come out of their own pockets. |
A lot of the pressure has been brought on managers by the fund companies themselves. They create unrealistic expectations. |
A mentality has set in that you should never get help with your finances. But some people would benefit. |
Any time you let a stock run up to 40 percent of your portfolio, you have to have a lot of convictions. There aren't a lot of funds like this. |
At the boutique firms, it's a way to get recognized. |
He is one of the smartest managers around. |
I can't think of many managers who like studio stocks. It's a business with pretty uncertain returns. You can lose your shirt making a handful of movies. |
I really think that it's a little bit of a quirk that a lot of funds were able to do well. |
I think there is an increasing recognition at Fidelity that fund size can really harm performance. If they are too big it can be pretty tough to reposition a portfolio. That is something Fidelity didn't acknowledge a few years ago. |
I think we saw a taste of what could happen in July, when a brief and moderate correction caused this fund to lose nearly 7 percent, about twice the loss suffered from the average conservatively managed large-cap fund. |
In any given market, index funds should beat 60 percent of actively managed funds, not 90 percent like it's been. |
In general micro caps are riskier because their share prices jump around more because not as many people are trading them so moves can be more dramatic. |
Indexing is a long-term strategy. It still makes sense to have a mix of index funds and actively managed funds. |
It's fine to make a bet on a sector, but you should know what bets you're making. The biggest lesson this year is diversification. What that means right now is to have exposure to a lot of major market sectors and not just chase health care because it did well. |
Mid-cap and large-cap growth funds tend to have a lot of technology stocks and biotech stocks, and biotech stocks have really gotten pummeled too. It seems like there's been a flight from anything perceived to be risky. |