Wednesday, January 4, 2012

Mutual Funds Report: Second Quarter

AppId is over the quota
AppId is over the quota
A Patterson-UTI Energy rig in Washington County, Pa. The company is among the holdings of the FPA Capital fund, which has kept an average of 30 percent of its assets in cash for the last year. Fund managers who increase cash positions before a market downturn can later use those reserves to buy beaten-down stocks.

Many investors suffered in the last quarter’s sell-off, but losses in large-cap stock funds weren’t as bad as those for riskier, small-cap portfolios.

Motorcycles are assembled at a unit of Astra International, an Indonesian company that is among the selections of the Causeway Emerging Markets fund. In the last economic slowdown, stock markets of countries like China, India and Brazil fared worse than their generally healthy economies. Could that change in the next downturn?

Dan Denbow, co-manager of USAA Precious Metals and Minerals, focuses more on stocks than on gold bullion prices. Throughout the summer, mutual funds looked for havens — typical ones like gold, and less common ones like short sales — as they tried to shield their investors from the market’s huge losses.


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