Henry Ellenbogen had a tough act to follow when he took over the T. Rowe Price New Horizons Fund in March 2010. His predecessor, John Laporte, had beaten three- fourths of peers in his 22-year tenure as manager.
Imitation, the saying goes, is the sincerest form of flattery. In the financial services industry, it's often flattery that investors could do well without: A crush of similar products in a niche market is often a sign to run in the opposite direction.
Kenneth Heebner ranked as America’s No. 1 stock picker before losing his touch and most of his main fund’s assets. The 71-year-old manager, at the bottom of his peer group for the fourth year in five, hasn’t lost his swagger.
Bill Gross’s $285 billion Pimco Total Return Fund led declines among the most-popular bond mutual funds after the Federal Reserve sparked a global selloff by indicating it may start reducing asset purchases.
Marc Pinto and Gibson Smith, co- managers of the $8.9 billion Janus Balanced Fund, gave investors the highest returns with the lowest volatility among asset- allocation mutual funds by leveraging their bond research to pick stocks.
Pimco Unconstrained Bond Fund and other “go-anywhere” bond funds created during the 2008 credit crisis went mostly to the wrong places in 2011 after missing a rally in Treasuries and buying riskier assets that lost ground.
Jeffrey Gundlach , the lone bond manager to beat Bill Gross in the past 5, 10 and 15 years, said there won’t be any “new normal” to guide investors until policy makers repair the damage caused by the financial crisis.