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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Investor2 who wrote (1119)	9/20/1998 3:15:00 AM
From: marc ultra	Read Replies (4) \| Respond to of 15132

i2,re:< Has the huge multi-year bull run that we've had during the 1990's invalidated the use of the beta coefficient? Let me rephrase that a little. During a period in which the market is always going up, is a beta less than 1.0 simply a sign of underperformance, rather than a sign of less risk?> In the case of the SF growth fund it seems to have done about as poorly on the downturn while underperforming significantly on the up moves. This doesn't look like a matter of beta so much as a matter of lousy stock selection and as I recall Roger Honour seemed to have liked groups like the papers and some of the oil services which have done lousy. I really don't see a compelling reason at this point to keep paying more expenses and more in taxes for the pleasure of continued significant underperformance . I noticed when someone asked Bob directly about the this SF as well as the recommended Milwaukee growth fund he agreed they underperformed and just emphasized how it seems hard for the managed funds to keep up with the indexes. I also notice how when someone calls up and asks about portfolio 1 or 2 Bob often gently nudges them toward the active/passive portfolio. I think I'll ease out of these funds and buy more SPYders and maybe more TIGEX though I hope this doesn't turn into another one year wonder. I find the Total Market Index Fund too restrictive for me. While I can understand them not wanting telephone redemptions, I couldn't even telephone exchange money into the fund Marc