Thanks for the info. I invest in stocks and mutual funds and options,
so the recent turbidity in the stock market has made me fall a little
behind on all the recent fund openings and closings.
What do you think about all the PBHG funds now? PBHG Growth and
Emerging Growth will have to deal with cash management problems
that they didn't have to deal with when they were closed. Add to
that all the new funds and one must wonder.
A fund that is closed is great in a market like this because if
the market crashes, closed funds tend not to have people cash out
as quickly. Hence the fund is protected to some degree from the
inflow/outflow imbalance that could occur during a crash. So the
manager doesn't have to do much cash management selling. With open
funds, the manager will have to sell to meet withdrawals, even if
he believes the market will move back up, and may miss it. Closed
funds that are re-opening seem the worst of all worlds, because
the investment principles that were guiding the fund are based on
a more stable shareholder constituency, and now that constituency
has become more flighty almost by definition. Pilgrim is amazing,
but I do wonder. I always use the rule of thumb to follow the
manager, not the fund, but if the basic operating principles change,
I tend to discount the recent performance before the change.
Thoughts? |
