Tom,
Can you imagine a money manager who claims to know how well a company is doing by its share price movement alone? That seems to be what you are saying about your mutual funds.
How does a mutual fund manager know what his stocks will do in the future? Well, it isn't a pure gamble as you describe it, as much as it is a judgment call, that is based on a number of fundamental criteria - the most important of which is the QUALITY of the company's management, which can be determined by examining the company's various financial measures, by interviewing management, and considering the plan they have put in place in order to achieve their objectives. My point entirely is that a decision to own a mutual fund should be made in exactly the same way.
Using the approach that you do, what conclusion have you drawn from the NAV decline that we've seen in the PBHG funds over the past 9 months? Are the PBHG managers not doing their jobs well enough?
I'm not advocating that PBHG lead the herd or teach trading techniques. But, I do feel that the more timely disclosure of mutual fund holdings is an inevitability, because it is in the best interests of shareholders to become better informed investors.
Best regards,
William |
