Fund Spy E-Book

Russel Kinnel

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 240

Veröffentlichungsjahr: 2009

Beschreibung

Author Russel Kinnel walks readers through the handful of key factors they need to pick winning funds. Armed with the quantitative data and qualitative research, they will gain the confidence to pick great funds for the long-term. This book will be accompanied by a web-based tool created by Morningstar, which will enable readers to evaluate their own funds using Kinnel's criteria.

Written in a fun and accessible manner, The Fund Spy offers Kinnel's unique insight as a 14-year Morningstar fund analyst. He speaks plainly about the conflicts that can go against investors' interests, explaining how to avoid traps and push out the slick sales pitches facing today's investors. He also offers several "10 lists," which provide quick answers to investors' most common questions (e.g., the Top 10 Funds to Recommend to Relatives, the 10 Best Contrarian Managers, the 10 Most Overrated Managers).

Leseprobe

Table of Contents

Title Page

Copyright Page

Dedication

Foreword

Preface

Acknowledgements

Chapter 1 - The Remarkable Gap Between Winners and Losers

The Forest for the Trees

Improve Your Chances of Success

Welcome to Lake Wobegon

FAQs

Chapter 2 - Does Your Manager Eat His Own Cooking?

How Ownership Is Disclosed

Managers Hate Their Own Cooking

Looking at Investment Levels at Our Recommended Funds

How Do Fund Companies Shake Out?

FAQs

Chapter 3 - New Trading Cost Estimates Shed Light on a Big Mystery

What Are Trading Costs?

Dark Matter Revealed

How to Do It

Putting It to Use

FAQs

Chapter 4 - The Power of Expense Ratios Is Greater Than You Think

Fund Expense Ratios Are So Powerful It’s Sick

Survivorship Bias, or Where High-Cost Funds Go

How Costs Predict Success

Your Chances Against a Cheap Index Fund

Low-Cost Funds Double Your Chances of Success

FAQs

Chapter 5 - How to Use Total Returns Wisely

Using Returns Data Intelligently

Using Performance to Pick Funds

FAQs

Chapter 6 - Understanding Mutual Fund Strategies and Fundamental Risk

Fundamental Risks

Key Stock Fund Strategies

A Guide to Top Stock Fund Strategies

Measuring Volatility

FAQs

Chapter 7 - How to Find Good Managers and Avoid the Dodgy Ones

What You Can Look For

Finding a Manager with Competitive Advantages

Finding an Ethical Manager

FAQs

Chapter 8 - The Inside Scoop on No-Load Fund Companies

American Century

Artio

Artisan

Brandywine (a.k.a. Friess Associates)

Bridgeway

Dodge & Cox

Fidelity

Harbor Funds

Janus

Longleaf Partners (a.k.a. Southeastern Asset Management)

Loomis Sayles

Marsico

Masters’ Funds

Matthews Asia Funds

Oakmark (a.k.a. Harris Associates)

PIMCO

Primecap

Royce

T. Rowe Price

Third Avenue (a.k.a. M.J. Whitman Co.)

Vanguard

Wasatch

Wellington

Chapter 9 - The Inside Scoop on Broker-Sold Fund Companies

AllianceBernstein

American Funds (a.k.a. Capital Group)

Columbia

Davis/Selected

FPA

FranklinTempleton

MFS

Mutual Series

Oppenheimer

Putnam

RiverSource

Chapter 10 - Twenty Great Funds That Passed My Test

Criteria for Fund Selection

Twenty Great Funds

Appendix A - The Best of Eleven Years of Fund Spies

Appendix B - Vital Statistics on the 20 Funds That Passed Our Test

Glossary

About the Author

Index

Copyright © 2009 by Russel Kinnel. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, [phone], fax [phone], or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, [phone], fax [phone], or online at www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at [phone], outside the United States at [phone] or fax [phone].

Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. For more information about Wiley products, visit our Web site at www.wiley.com.

eISBN : 978-0-470-47349-8

For Elisabeth

Foreword

MANY MUTUAL FUND GUIDES, quite frankly, are tired rehashings of stale academic papers. They run you through the history and evolution of the fund industry and discuss the efficient frontier, the importance of diversification, and the necessity of a long-term perspective, but they always pull back when it gets to the good stuff, the stuff that really matters—whom you can trust and why. That’s certainly not the case with Fund Spy, a book built entirely around original research, as well as pull-no-punches opinions on how you should invest and to whom you can entrust your savings. This book is the real deal, an insider’s guide to what the fund industry is like—the good, the bad, and the funny.

Mutual fund analysis is at the very core of Morningstar’s identity, and while there are many teams of great people at the company, there’s no group more passionate in their mission than Morningstar’s fund analysts. I ought to know. I was the company’s first analyst, and it has been a delight to see the team evolve over the past two decades. Crucial to the team’s growth has been the immense contribution of Russ Kinnel. As you’ll see in the pages that follow, Russ brings keen insights, a wicked wit, and a genuine concern for the small investor to his work. He’s a wonderful writer and has led many ground-breaking research efforts, several of which are detailed here. Moreover, he’s a blast to work with. No one sends a sharper, funnier e-mail than Russ.

Fund Spy gives a great picture of what it’s like to be a fund analyst at Morningstar. Trading costs, managers investing (or not) in their own funds, variations on an investment style—these are the kinds of things we discuss daily and work to teach our new analysts about. Russ has condensed 20 years of our collective learning into a tidy primer that would be a great asset for any fund investor. He doesn’t kowtow to fund industry interests; he simply does what we ask all our analysts to do: Tell the story as fairly and accurately as possible, and do it from the investor’s perspective. When you can do all that and combine it with Russ’s wit, you’ve got a winning combination.

In the pages that follow, you’ll get the inside dope on how to assess a fund manager’s commitment, why costs matter so much to your results, and how to avoid common pitfalls in fund selection and portfolio construction. But like any great storyteller, Russ saves the best for last. His rundown on the top fund shops—both load and no-load—and his take on the best, time-tested funds are both dead on the mark. I wouldn’t change a word. Having Russ at your side when navigating the world of mutual funds is like having Quentin Tarantino helping you fill your Netflix list, or having Lester Bangs at your side as you sort through stacks of classic rock and roll records. Even if you know the territory, you’re sure to learn something new and discover some hidden gems.

Enjoy!

DON PHILLIPSManaging DirectorMorningstar

Preface

I STARTED AT Morningstar in 1994. That year, interest rates were spiking, and the Mexican equity bubble inspired by NAFTA turned into a panic. Soon after that, California’s Orange County defaulted on a slew of debt brought on by unwise mortgage investments. Over the ensuing years, we saw a Russian default mess, an Asian meltdown, the bailout of Long-Term Capital Management, the bursting of the Internet bubble, the attacks of September 11, wars in Iraq and Afghanistan, the corporate meltdowns of Enron and WorldCom, and, most recently, the subprime housing bubble bursting and shaking financial institutions to their knees.