You’ve no doubt been following the day-to-day movements in individual equities. Panic selling hit the market hard, and individual investors are seeing a lot of red these days. But what’s happening in the fund world? According to InvestorPlace analysts Dan Wiener and Jim Lowell in a feature by Barron’s, now is the time for active managers to shine and steer their clients through the storm.
That’s exactly what the duo is doing, both at their money-management firm and through their mutual fund newsletters: Independent Adviser for Vanguard Investors, Fidelity Investor and Fidelity Sector Investor.
But what does this mean for you, if you’re not a fund manager yourself? Well, it’s important to see how the best guys in the business are running things.
Wiener and Lowell aren’t too shy to admit that the coronavirus from China has brought about “extraordinary times” in the market. And as a result of that, it’s not irrational for investors to react in fear.
However, Wiener and Lowell are adamant that now is not the time to panic and cash out. In fact, instead of panicking, now is the time to take the plunge.
Buy the Manager, Not the Fund
So you want to take the plunge, but now what? In the Barron’s article, Wiener and Lowell recommend that individual investors should “buy the manager, not the fund.” Doing your own research on managers will give you the long-term confidence to stick out market downturns like this one. How did a certain manager perform in 2008-09? What about in prior recessions?
This advice isn’t coming from just anyone. Wiener and Lowell’s model portfolios “have outperformed over the long haul,” according to Barron’s, so their evaluations of other managers matter. And right now they are looking for market outperformance, solid track records across multiple portfolios and a manager’s history in bull and bear markets.
And if you want some recommendations, you’re in luck. Wiener singles out Primecap Management. Yes, some of the firm’s most notorious funds are closed to new investors. But Primecap’s Odyssey offerings — the Odyssey Stock Fund (MUTF:POSKX), Odyssey Growth Fund (MUTF:POGRX) and Odyssey Aggressive Growth Fund (MUTF:POAGX) — all make the grade.
Lowell adds Fidelity Total Bond (MUTF:FTBFX) and Bailie Gifford Long Term Global Growth (MUTF:BSGLX) and Vanguard Dividend Growth (MUTF:VDIGX), among others, to the list.
These funds — and their excellent managers — are all good starting points. But look to Wiener and Lowell for advice, clear-headed money management and consistent outperformance. In times of panic, they know what to do.
Daniel P. Wiener is a journalist at heart, as well as the leading “watchdog” to The Vanguard Group, America’s top mutual-fund provider. But he left the financial media behind to provide what investors REALLY need — clear, expert advice on Vanguard’s Best & Worst Funds. Dan may own the aforementioned securities.
James Lowell was once a senior financial reporter at Fidelity Investments; today, Jim is the leading independent expert on his favorite fund family — and its best managers. Thanks to his proprietary Manager Ranking System, Jim easily narrowed the field to Fidelity’s 5 Best & Finest Funds … plus the 3 worst funds! Jim may own the aforementioned securities.