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Thursday, September 24, 2009

Is This Anyway to Pick A Mutual Fund ?

from the tech ticker website
my comments in italics at the end

Top Ranked Fund Manager Finds Ways to Beat the Market
Posted Sep 23, 2009 11:19am EDT by Peter Gorenstein in Investing

With the S&P 500 rallying sharply off the March lows, the key is not to, "get swept away by some of these momentum stocks and stocks that have been moving because those could turn around and end up burning people," say Bob Auer, portfolio manager of the Auer Growth Fund.

Auer preaches investor discipline and has a keen eye for fundamentals.

Thanks to his stock picking strategy the fund gained 31% in the second quarter and Lipper ranked it the #1 multi-cap growth fund over that same period....

A little bit of research shows that the fund started in December 2007 and lost 53.27% in 2008.The one year performance of -31.79 is 18% worse than the S+P 500. It has assets under management of under $150 million, many registered investment advisors have more assets under management. The management fee is 1.95% (!).

But that didn't stop other hot money chasers like Smart Money and The (Cramer vs Fund Manager video)to feature this manager.

After all this year he is outperforming the S+P 500 by 16% (after underperforming by 18% last year), Isn't that a good reason for investing in this fund ?

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