Scott Cooley
Scott Cooley
Scott Cooleywas an Old West Texas Ranger and later outlaw, best known for his association with gunman Johnny Ringo...
chasing flows growth investors nearly perception performance poorly problem reality seen start stocks strong technology throughout vice wonder
Nearly everything that had done well in 1999 has done poorly this year, and vice versa. I think the problem is perception lags reality with investors. Throughout this year, we've seen strong flows into technology and growth funds, and the stocks haven't done well. You wonder when investors will start chasing performance and go to value.
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Some of the higher-turnover areas, like small blend funds and mid-cap growth funds, have a problem delivering comparable returns to their peers when too much money flows into the fund.
dedicated fantastic people record
Probably most people don't know who he (Weitz) is, but he has a fantastic record and a dedicated following.
At the boutique firms, it's a way to get recognized.
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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.
confidence happened month past
My confidence in them would not be shaken by what's happened over the past month or so.
There is something to be said for having well-informed shareholders.
difference returns subtle
Those subtle differences (in returns of index funds) make a big difference over the long term.
bullish companies cutting debt fed people prospects
This year, with the Fed cutting rates, people are getting bullish on the prospects of these companies making their debt payments.
backup barney beyond center companies extent fund funds happened initial investment key offices operations personnel question response seems smith trade
To the extent that fund companies had operations in the World Trade Center, they typically have backup files, so there shouldn't be any problems. Beyond that, the question is what happened to key investment personnel, and the initial response seems to be good. Oppenheimer Funds had offices in that building, and most of their personnel seems to be accounted for. And all personnel from Salomon Smith Barney was evacuated from 7 World Trade Center before it collapsed.
bet bets biggest care chase exposure fine health lesson major market means year
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.
couple last stay turns twists unexpected
When you think back in the last couple of years, there have been so many unexpected twists and turns in the market. It really makes sense to stay diversified.
brought companies create fund managers pressure
A lot of the pressure has been brought on managers by the fund companies themselves. They create unrealistic expectations.
educated expenses higher understand
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.