Mutual Funds
What a Difference a Couple of Torrid Months Make
Powerful rallies pushed most of the Kiplinger 25 funds back into the black.
From Kiplinger's Personal Finance magazine, July 2009
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We depart this month from our usual pattern of listing one-year results and instead show year-to-date returns. After a horrid start in 2009, the stock funds in the Kiplinger 25 benefited from powerful rallies in markets around the globe since early March. Nearly all are in the black, and most are beating their benchmarks.
That T. Rowe Price Emerging Markets (symbol PRMSX) has performed best is no surprise -- developing markets have been sizzling. More intriguing is the boffo performance of Longleaf Partners. A concentrated value fund run by Mason Hawkins and Staley Cates, Partners rode big gains in Sun Microsystems, which is being acquired by Oracle, and Liberty Media Entertainment.
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Reader Comments (1)
Posted by: Deborah Rummelhart at 06/21/2009 08:55:59 PM
It is a mystery to me why you find the "boffo performance" of Longleaf partners "intriguing". I think outstanding performance from Longleaf Partners is to be expected for the following reasons: (1) The managers of the Longleaf Partners funds are required to make all their equity investments in the Longleaf family of funds. Thus, the managers of the funds and the outside investors have the same interests instead of the conflict of interest that exists in some other funds. (2) The managers of the funds are very honest, disclose everything, are modest about gains, and don't hide or make excuses for negative returns. They also maintain a remarkably low expense ratio. (3) The managers have chosen a value approach, stick to it, and are very talented in executing this strategy. Although I normally invest only in index funds, I have made an exception to this policy for Longleaf Partners, and have been well rewarded for this decision.