A brave new mutual fund
If the mutual fund industry is to survive in anything even remotely like its present form, it's going to have to get tough and creative. At least one firm is stepping up to the plate.
If the mutual fund industry is to survive in anything even remotely like its present form, it's going to have to get tough and creative. At least one firm is stepping up to the plate.
If the mutual fund industry is to survive in anything even remotely like its present form, it's going to have to get tough and creative.聽 Launching another hundred index-huggers every year simply won't do it, especially with the internal expense ratios and tendency toward mean reversion that make virtually all mutual funds inferior to their passive index ETF counterparts.
But the Gabelli Funds people are stepping up to the plate, check this out...
From Investment News:
It's not the first focused fund, of course, but it is a new entrant in a category that has grown stale with Ken Heebner (CGM Focused Fund) wannabes.
The plan is to have 50% of the of the fund be in their Focus Five names (which will be stocks like Madison Square Garden ($MSG)聽 that they believe to absolute homeruns on a valuation basis).聽 That's pretty courageous and I like it.聽 Whether or not it will work is another story, but here's something on the Gabelli Focus Five track record...
I'm sure we'll be hearing more as the fund comes to market.