MPI Research Corner

The November 21 WSJ article “Hedge Funds Kiss Their Alpha Goodbye“ and a follow-up article look critically at the performance characteristics of hedge funds by presenting facts that, in authors own words, “aren’t exactly great PR for the hedge fund industry.” The article and its controversial conclusions got a lot of attention so we were [...]

Please click on the enclosed video for a quick, step-by-step analysis of American Funds Growth Fund of America. Please check our blog and research area in the near future for a longer-term quantitative analysis of this fund with associated .pdf reports.

An October 15th WSJ article, “When ‘Focused’ Funds Falter”, finds many prominent stock-picker funds among some of the worst performing this year. Of such funds, Fairholme Fund (-27.6% YTD through Oct 13), a subject of one of our previous blog posts, is one of the most notable – along with Bill Miller’s Legg Mason Opportunity [...]

Bruce Berkowitz’s fund has gotten a lot of media attention lately. Investors point to significant financial sector exposure and investments in AIG, BofA, Citi and St. Joe stock in particular as a drag on the fund’s 2011 results. While admitting on the conference call that the fund’s performance this year was “horrible” and the health [...]

Following our previous analysis of the Waddell & Reed fund we performed a similar analysis of a group of the largest equity funds with combined AUM over $500B. Average fund exposures are shown in chart below (bottom part) and contrasted with the Ivy Asset Strategy fund (top). The Ivy fund is not included in this [...]