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

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

Rating:The Stock Funds Have No Heroes Not Rated 0.0 Email Routing List Email & Route  Print Print
Friday, April 10, 2015

The Stock Funds Have No Heroes

News summary by MFWire's editors

If you're feeling a little nostalgic for the good old days of star stock pickers, or pondering the disappearance of those stars, take a look at Bloomberg today.

Charles Stein of Bloomberg highlights the lack of any real heirs to the legendary equity fund PMs of old, like Peter Lynch and Bill Miller. The article contrasts the lower profile of current top-performing stock fund PMs with the higher profile of old stock fund PM stars or of current star bond fund PMs like Bill Gross (now Janus [profile]), Jeffrey Gundlach (DoubleLine [profile]), or star hedge fundsters like Carl Icahn and William Ackman.

Part of the story, as Bloomberg notes, is the net outflows (partly thanks to performance woes) from active stock funds over the past few years ($231 billion in the six-year post-financial crisis bull market, compared to $1.1 trillion net flowing into passive stock funds and ETFs and $1.2 trillion flowing in active and passive bond funds and ETFs). And part of the story reflects fundsters' differing strategies: prominent stock pickers like Dodge & Cox [profile], Primecap, and Sequoia-powering Ruane Cunniff & Goldfarb [profile] (or Capital Group's [profile] American Funds, unmentioned in the article) rely on analyst and PM teams, what Bloomberg calls "the antithesis of the star system." Having a team instead of a single star means less spotlight, both when things are good (so fewer interviews) and when things are bad (when someone leaves).

"There are still some fantastic managers out there," Dan Kern, president of Walnut Creek, California-based Advisor Partners, tells Bloomberg. "They are just not people who are going to jump on the couch and throw their arms in the air."

Gundlach himself also posits that bond fund PMs make better gurus for TV and other media outlets.

"The bond guys tend to talk about macro issues, which are of interest to a broader audience," Gundlach tells Bloomberg. "How many times can you hear a stock manager say he likes Apple?"

"Today, you couldn't find anyone to put on the cover of a magazine," Lawrence Glazer, managing partner of Boston-based Mayflower Advisors, tells Bloomberg. "The stock funds have no heroes."

The article mentions several former stars, including Ken Heebner of CGM [profile] and Bruce Berkowitz of Fairholme [profile], as well as Legg Mason's [profile] Miller and Lynch.

On the flip side, Bloomberg also points out some of the current, often under-the-radar, elite stock picking fundsters: Henry Ellenbogen of T. Rowe Price [profile], William Nolin of Principal [profile], William Smead of Smead Capital [profile], David Herro and Bill Nygren of Harris Associates [profile], Will Danoff of Fidelity [profile], James Miles and David Green of Hotchkis & Wiley [profile]. 

Edited by: Neil Anderson, Managing Editor

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

 Do You Recommend This Story?

Return to Top
 News Archives
2021: Q2Q1
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

  1. ETF.com Awards 2020, April 20
  2. The 31st Sub-Advised Funds Forum, Apr 20-21
  3. IDC Virtual Roundtable: Florida - April 2021, April 20
  4. IMEA Marketing Council Roundtable | Engaging Advisors In a Virtual World, April 21
  5. MMI Summit 2021, Apr 21-22
  6. MFDF Director Discussion Series - Open Forum via Zoom (Northeast), April 21
  7. FIASI virtual event - ESG in Fixed Income: Shining a Light on Transparency, Apr 22-23
  8. IDC Virtual Roundtable: Alabama, Georgia, North Carolina, and South Carolina - April 2021, April 22
  9. Nicsa webinar - Diversity Data: What is at stake? Business, Reputation and Talent, April 22
  10. IDC Webinar: The Future of the Workplace - April 2021, April 23
  11. IDC Virtual Roundtable: Arkansas, Louisiana, Mississippi, Oklahoma, Tennessee, and Texas - April 2021, April 27
  12. IMEA In Session - Post-Covid Sales Coverage, April 27
  13. MFDF Case Studies in Fund Oversight — A Virtual Roundtable for Directors, Apr 28-29
  14. IDC Virtual Roundtable: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota - April 2021, April 29
  15. 44th Annual AIMSE Marketing & Sales Conference, May 2-4
  16. MFDF Director Discussion Series - Open Forum via Zoom (Southeast), May 5
  17. ICI 2021 General Membership Meeting - Day 1, May 6
  18. Emerging Manager Forum USA, May 12-14
  19. ICI 2021 General Membership Meeting - Day 2, May 13
  20. 2021 FINRA Annual Conference, May 18-20
  21. IDC Speaker Series - Abby Joseph Cohen: A Conversation About the State of the Global Markets, May 19
  22. 2nd annual ETFGI Global ETFs Insights Summit - USA, May 19-20
  23. MFDF Director Discussion Series - Open Forum via Zoom, May 19
  24. Irish Funds Online Annual Global Funds Conference 2021, May 19-20
  25. MFDF webinar - Fund Director Compensation: MPI Annual Survey (2021), May 20
  26. ICI 2021 Operations and Technology Conference, May 20

©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