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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Moominoid who wrote (11003)	11/8/2001 9:21:58 AM
From: Mark Adams	Read Replies (1) \| Respond to of 74559

good performance attracts more funds This is true on the face. Yet I suspect using 12B-1 money to build assets under management through promotion easier than actually getting the stock selection right and growing assets organically. While enjoying a box of Krispy Kremes no doubt. Just my very cynical perspective. Fund managers are only valuable if they have and use specialized knowledge- ie for BioTech I might rely on the management of HQH/HQL for stock selection since I'm not an expert on Biology or drug development.

To: Moominoid who wrote (11003)	11/8/2001 10:02:46 AM
From: LLCF	Respond to of 74559

<It is in mutual funds' interest to get the best performance they can given the product description> Well, it's in their best interest to maximize profits... ie. get as much money under management as possible through marketing. PART of marketing is past performance... but the overriding factor in success is to get more money under management... the point is that they are broken battleships, they CANT change direction, and they WONT sell stocks as an asset class no matter how overvalued... until the public pulls out.... EVEN IF THE MANAGERS HAVE SOLD ALL THEIRS AND FLED THE CLASS. EVEN IF THE MANAGEMENT THINKS ITS STUPID TO HOLD STOCKS. Like now, it's stupid to hold many stocks as a class... ie. S&P 500 type. Notice how stocks are marketed as THE investment by the whole industry, regardless of price, never mentioned. As usual, JMO. DAK