There is something to be said for a consistent return, but unless you have an intimate understanding of hedge funds, it's better to go to school on someone else's money.
Literally, this has no effect on the mutual-fund business.
Anyone who stuck with him deserves some sort of an award for that near-death experience.
If it wasn't an impulse purchase and it wasn't the result of high-pressure sales tactics, I feel you should allow at least 12 months of poor performance before the fund even hits your radar screen.
Fund companies would like you to believe that the fund is an institution and carries on regardless, but I don't think that's consistent with the real world. Funds are people. It ultimately comes down to the quality of the talent.
There is big tension when a fund company decides to close a fund, because growing assets is how they make their money. Meanwhile, investors will push for an early close because by the time a fund closes it's usually already too late.
If your fund has trailed its benchmark for 12 months, three years and five years, along with its peer group, then you have some pretty good reasons for selling.
I think Lasser has to go, ... For being known as a detail-oriented control freak, it is inconceivable that he didn't know about this. What is even more shocking is that he didn't do anything about it.
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