Friess Associates, the adviser to the Brandywine Funds, is letting clients know their money is safe and sound amid market turmoil.
In a letter to shareholders, dated August 13, Bill D'Alonzo, chief executive officer and chief investment officer of the Greenville, Delaware-based firm, told clients "we thought you would appreciate an update amid the recent increase in volatility."
The letter goes on to explain a little bit about the how and why, problems that subprime mortgages have caused in the credit markets can affect the bigger picture.
D'Alonzo told the MFWire
in an e-mail that"we believe that each person who entrusts money to our care pays us a great compliment that deserves an equal commitment on our end. Providing communications that give investors insight into their portfolios and keep them attuned to our thinking is a critical component in fulfilling our obligation to prudently grow their assets."
D'Alonzo added that the August 13 letter was not Friess' first intra-quarter communication with shareholders.
Also mentioned in the letter is the fluctuating stock price of Precision Castparts, Fleiss' second-largest holding firm-wide. The stock price had fallen from $137 a share to $120 a share during trading on August 10. The share price eventually rebounded to $135 a share at the close but surely many investors were feeling spooked by then.
D'Alonzo reassures the shareholders that Brandywine fund's exposure to the financial sector remains low and even sounds downright optimistic when talking about the "new opportunities" the situation may create to "by weighing on companies that will likely emerge unscathed once the situation comes into better focus."
"Your portfolios continue to fare well versus benchmarks so far this quarter and year," D'Alonzo told clients in the letter.
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