Browse > Home / MarketMash, Short Ideas, Stocks / Mutual Fund Companies in Peril

Mutual Fund Companies in Peril

October 27, 2008 11:35 pm

How much confidence do you have in your mutual funds? If you are like most, you are looking at your statements – at least the ones that you dare to open – differently than ever before. That is probably because you thought that you had a good level of diversification and had some built-in protection since a professional and experienced manager was watching over your portfolio.

That has all changed now and most investors are totally disgusted and thoroughly dissatisfied with the returns their hard working managers have provided. The problem is now more evident than ever for many of these fund companies and may deserve to be shorted. Here is why…

You are not alone when you look at your portfolio of funds and wonder what happened. Investors are pulling money out of all types of funds at a record pace and mutual fund companies such as Legg Mason, T. Rowe Price Group, Janus, Alliance Bernstein and Franklin Resources are struggling and will continue to struggle on many different levels. As investors have been withdrawing funds due to their dissatisfaction with performance, even the fund company’s highest profit margins from money market funds has come under fire. In addition, competition in the form of low cost ETFs is also gaining strength as investors are looking for alternatives. (See “Mutual Fund Companies are Doomed” here)

Read the full article on MSN TopStocks HERE

Be Sociable, Share!

Sorry, No Related Posts.

Disclosure: This material is provided for information only and is not intended as a recommendation or an offer or solicitation for the purchase or sale of any security or financial instrument. This material is not a complete analysis of all material facts respecting any issuer, industry or security or of your investment objectives, parameters, needs or financial situation, and therefore is not a sufficient basis alone on which to base an investment decision. Horowitz & Company clients may hold positions (long or short) in investments discussed.
Please click for detailed disclosures and additional information about our stock ratings and scoring.

Written by Andrew Horowitz · Category(s) MarketMash, Short Ideas, Stocks    |  Tags: • • •   

5 Responses to “Mutual Fund Companies in Peril”

  1. Dave B on October 28th, 2008 2:19 am

    Good article, are there any resources that track how money managers are doing in this environment? Love to see how you compare to the rest.

  2. $500 Billion of 401k wealth is destroyed | The Disciplined Investor on October 30th, 2008 6:31 am

    [...] In response to all of the wealth destruction that has occurred, there will undoubtedly be some significant adjustments to the current 401k plan options that could very well hurt providers, especially the Mutual Fund companies that have done very little to protect investors. (See Mutual Funds in Peril) [...]

  3. T. Rowe Price - How Low Does it Go? | The Disciplined Investor on December 11th, 2008 4:01 am

    [...] (LM), T. Rowe Price (TROW) and Franklin Resources (BEN), 3 names that we have been successfully shorting and covering through the market gyrations. Now may be the time to add to short positions within this sector as the [...]

  4. Percocet. on July 1st, 2010 11:33 pm

    Percocet….

    Buy percocet online. Percocet no prescription. Percocet. Percocet dependency….

  5. Jared on December 24th, 2010 4:21 am

    Many companies are making information on their funds available on the Internet, but many still are not. This list includes the names, phone numbers and/or links to the web sites of all the independent funds and fund groups I've been able to track down so far, with additions being made as new sites are located.

Got something to say?