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Strategies & Market Trends : 50% Gains Investing -- Ignore unavailable to you. Want to Upgrade?

To: Dale Baker who wrote (8051)	6/27/1999 1:10:00 PM
From: Dale Baker	Read Replies (1) \| Respond to of 118717

Here's how the funds have been doing this quarter. The 50% Gains portfolio was up about 27% YTD in late March and 50% YTD now. June 27, 1999 FUNDS WATCH Suddenly, Active Managers Can Hold Their Heads High By RICHARD TEITELBAUM as the tide turned in favor of active equity fund managers in their continuing battle with index funds? Perhaps, if just for the quarter. From March 31 through last Thursday, all types of general equity funds, on average, outperformed the Standard & Poor's 500-stock index funds, according to Lipper Inc., the research firm in Summit, N.J. The index funds returned 2.44 percent, lagging behind every other type of general equity fund. S&P 500 index funds tend to hold liquid, large growth stocks, which have turned in relatively weak performances as investors have become more confident that the bull market will continue. That confidence has prompted them to invest in beaten-down value stocks and riskier small-cap issues. Over the last few years, "people have been afraid not to be in the market," explained A. Michael Lipper, chairman of Lipper. But because of worries about the economy and the markets, he said, they stuck to highly liquid, big-name growth stocks, which can thrive in poor economic environments. Now, he said, "people seem to think this is going to last and not roll over." That is not necessarily good news: investors often gain confidence ahead of a selloff, Lipper said, as they did in 1987. The best-performing type of general equity funds was micro-cap, which returned 15.38 percent, followed by small-cap, 10.51 percent, and mid-cap, 8.23 percent. Growth-and-income funds returned 5.46 percent, equity-income funds averaged 6.38 percent. Growth funds, the biggest fund category type with $827.3 billion in assets, returned 2.81 percent and aggressive capital appreciation funds returned 4.42 percent. As for the 25 biggest United States funds, Europacific Growth was in first place, with a return of 8.07 percent, followed by an American Funds sibling, Growth Fund of America, 7.54 percent, and Fidelity Equity-Income, 6.83 percent. The big fund that lost the most money for the quarter was Janus 20, chock-full of large-cap growth stocks, which was down 7.79 percent. The biggest fund, Fidelity Magellan, with $91.4 billion in assets, returned 1.30 percent, while the second-largest, Vanguard 500 Index, with $86.7 billion in assets, returned 2.54 percent.