Keith,
What you've posted is disconcerting, but I think a bit of perspective is in order...
Yes, JD sold 90K shares of STD... but that was only a small fraction of what he continues to hold.
It also doesn't say what the proceeds from all of those sales went to, maybe to fund customer redemptions, or to buy other stocks. The dynamics of running and funding a Mutual Fund are totally different from a single person's portfolio. From October to May is a fairly wide timeframe... are you sure he recommended buying them after he sold, or maybe before?
I do find it interesting, and unsettling, that he is buying Time-Warner without having it on his list, much less Worldcom and LCI. Of course, liquidity could have a major role again. A Mutual Fund must buy a much larger number of shares and is therefore often confined to larger cap stocks. Buying shares in CSRE would most likely not affect the Mutual Fund's bottom line, short of taking over the company.
Lots of these questions, regarding timing and who got precedence, came up when the mutual fund first was announced. In my estimation, there is probably a pecking order that looks like:
A) Privately managed accounts
B) Mutual fund
C) Newsletter subscribers
This is a function of both size and return. It's easiest to move personal clients in and out at a moments notice, especially if they aren't in possession of Mutual Fund levels of stock. He also has direct control over the Mutual Fund purchases, and is much more closely scrutinized if it fails or succeeds. Since the last one is a "use my guidance as a basis for your own decisions" area, it probably comes out last in the tug-of-war.
I guess "...sucks for us" might be an appropriate description.
DWB |
