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.
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.
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.
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.
Bill Gross’s Pimco Total Return Fund, the world’s biggest mutual fund, is trailing a low-cost Vanguard index fund this year as some of the top bond investors were blindsided by the rally in Treasuries.