The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Concerns Cause Fund Firm to Cease Quarterly Calls Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, February 12, 2003

Concerns Cause Fund Firm to Cease Quarterly Calls

by: Sean Hanna, Editor in Chief

While the SEC and shareholder advocates are asking for more disclosure from funds, at least one small fund shop has decided that the cost of disclosure is too high. O. Mason Hawkins, the chairman of Southeastern Asset Management (sponsor of the Longleaf Funds) told listeners on its conference call last week that the call would be the last.

Hawkins explained that "some people used this conference-call forum against us, to buy in advance or sell in advance of what Southeastern might be doing for our shareholders." The three Longleaf funds hold some $8 billion in assets.

Longleaf Funds had used the calls as a way to keep investment advisors and analysts in touch with their portfolio managers. The firm will continue its quarterly newsletters and its tradition of letting fund shareholders meet and question portfolio managers at its annual meeting in Memphis.

The conference calls, though, are a thing of the past. Longleaf discovered that while simply not commenting when asked about specific stocks may have prevented front-runners from scalping their portfolio, that practice created speculation about whether the fund continued to hold the stocks.

Meanwhile, Vanguard said today that it supports more frequent disclosure of portfolio holdings by the SEC and that it also supports the proposal for more cost disclosure by funds.

The Vanguard position on cost disclosure should come as little surprise, as the Valley Forge, Pennsylvania-headquartered firm has long made low cost the center of its business proposition. Its stance on portfolio disclosure is more daring.

Vanguard is, of course, one of the largest fund providers, and thus faces the potential for the largest added costs if more portfolio disclosure is required. However, it already discloses the largest positions in each of its funds on a monthly basis. If the SEC does not require the disclosure of full portfolios, the rule would not effect the firm's business.

Last month, Vanguard Chairman Jack Brennan caught the industry's attention by joining with Fidelity Chairman Ned Johnson in a editorial arguing against the SEC's proxy vote disclosure rule. Brennan's has come under fire for taking the stand against a rule that Vanguard founder Jack Bogle publicly supported.

It will be interesting to watch Vanguard's public stances down the road.  

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2021
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use