The Club

Yesterday I received my monthly issue of MONEY magazine. This issue has the special feature called "The Ultimate Investment Club" that highlights their picks for the top mutual fund managers. Let's see how their members made money for their shareholders.

My readers know that the only thing that counts in my book is performance and performance means they make money and do NOT lose money so I went back to preview their record since these experts took over. When you see the results of this club you will be glad you did not go on any camping trips with them. Here are six who manage stock mutual funds.

As we go along you must keep in mind that fund managers get paid for the amount of money they have under management and not on how much they make for you.

MONEY magazine has given them titles. I will not mention their names, but will give you the fund along with the stock exchange symbol so you can look it up on the Internet at www.bigcharts.com.

"The Survivor" who manages Seligman Communications Fund (SCICX) since it was founded has seen the share price start at $35 and rise to $54 only to fall back to $15 today. He is surviving with your money, but you are not.

"The Value Master" of Legg Mason Value Trust (LMNVX) sure doesn't know when the value has run out. Under his tutelage the fund has gone from $45 to $78 to $43.

"The Maverick" of CGM Capital Development (LOMCX) has been thrown by his horse. Share price in 1976 started at $10, went to $43 and is now $18. Tough ride for the shareholders.

Now we come to "The Bargain Hunter" who took over management of Oakmark Select (OAKMX) in 2000 when the market was at its peak. It was $22 and went up (!) to $37 and is now trading at $32. He is the only winner in the group. Congratulations.

Another loser is "The Opportunist". This guy should be getting his buy recommendations from cab drivers. He could not do any worse for the Strong Opportunity Fund (SOPVX). It started at $45 and has nothing but a downward journey to its present $29.

For the Brandywine Fund (BRWIX) we have "The Growth Guru". The only thing that grew fat was his wallet off of your money. He took over in 1998 at $45 and it went down to $22 in 1999, then up to $53 and is now $20. Actually he can only be given credit for the advance from $45 to $53.

In all fairness to these losers I did not include any capital gains or dividend payouts which during the few good years they had may have been very good, but probably not good enough to keep you at "even".

There are all kinds of clubs you can join, but obviously this is not one for you. When you see advertising for various mutual funds or how wonderful some fund manager is please look beyond the hype and check out the performance.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.

1-888-345-7870; [email protected]

In The News:


Barron's

ETFs Chasing Mutual Funds as Stock Buyer
Barron's
Mutual funds' outflows since last year have driven their equity ownership to a nearly 13-year low, according to Goldman Sachs. ETFs, meanwhile, are growing by leaps and bounds as a stock market force. “Corporations and ETFs will continue to drive ...


Bloomberg

ETFs Are Giving Mutual Funds a Run for Their Money - Bloomberg
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WealthManagement.com

Mutual Funds Still Dominate the Stock Market, But Here Come ETFs
WealthManagement.com
Mutual fund ownership of equities is at its lowest level in nearly 13 years, according to a research note from Goldman Sachs Group Inc. Meanwhile, exchange-traded funds are becoming an even bigger force in the stock market, the team led by Chief U.S. ...


US-based stock mutual funds take in most cash in a year -ICI
Reuters
By Trevor Hunnicutt NEW YORK, March 1 Fund investors' aversion to riding the market's highs showed signs of waning as stock mutual funds attracted the most cash in a year in the latest week, Investment Company Institute data showed on Wednesday.

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Utility Stocks for Retirement Investors: 1 Stock, 1 ETF and 1 Mutual Fund
Investorplace.com
But here's the real kicker for utility stocks. The Fed is raising rates, and that has caused them to flounder. But the sector has historically realized faster dividend growth than the pace of interest rate increases and inflation. For retirement ...


TheStreet.com

Hedge Funds Love These 4 Stocks -- Should You? - TheStreet
TheStreet.com
Here's a closer look at four stocks pro investors love for 2017....BAC.

and more »

Forbes

5 Best Funds For Your 401(k) And IRAs
Forbes
Over the last few years, mutual fund companies and discount brokers have been duking it out to see who can offer the lowest-cost ETF. An ETF is like a mutual fund that pools a wide range of stocks and bonds, only it trades on stock exchanges. It's an ...

and more »

CNBC

Why mutual funds could be on their way to another lousy year
CNBC
The improvement comes amid multiyear lows in the tendency of stocks to correlate up and down together, as well as an elevated level of dispersion, or the difference between returns for various sectors. Stock pickers in actively managed mutual funds ...
Stock pickers lift performance in battle of the benchmarksFinancial Times

all 4 news articles »

5 Aggressive Growth Mutual Funds to Buy in March
Zacks.com
This category of funds also invests heavily in undervalued stocks, IPOs and relatively volatile securities and seeks to profit from them in a congenial economic climate. The securities are selected on the basis of a company's potential for growth and ...

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Market Realist

How Hedge Funds and Mutual Funds View Financial Stocks
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According to Goldman Sachs (GS), hedge funds have reduced their position in financial stocks (XLF). However, mutual funds have strengthened their position in financial stocks. In the last one month of market rallies, financial stocks have led the gains ...

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