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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club

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To: Wally Mastroly who wrote (4039)3/22/1999 3:00:00 PM
From: marc ultra  Read Replies (2) of 15132
 
Wally re:fund mergers

I don't know if the article made the point but this is the reason why the indexes actually outperform managed funds even more than is apparent if that can be believed. Index funds never fold up or merge for bad performance but managed funds which get dismal performance have a tendency to fold up or merge and their drag on overall managed fund performance thus gets hidden. I guess that's just another reason I dumped MNMCX recently who already had lousy recent performance and is absorbing the even much worse small cap opportunities fund at that family. With so many people pulling out money from small cap funds it's hard to think of small caps coming to life soon without a shock to the market of some type

Marc
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