Small firms lose personality
From The Wall Street Journal
Firsthand Funds might boast the best-performing mutual fund in the five years ended June 30, but what the asset-management firm can't boast for much longer is the stock-picking team that delivered the 50.85% five-year annualized return. As reported in the MFWire.com in July, Ken Kam, co-manager of the soaring $400 million Firsthand Technology Value Fund, announced that he is leaving as co-manager, effective in October. He is starting his own firm. Kam's departure underscores the volatility of small fund firms who are dominated by one or two personalities.

Pursuing GARP
From Investor's Business Daily
Alliance Growth Fund's 9.5% return out paced the S&P 500 by 2 percentage points during the second quarter, when the market rotated toward value stocks. But since July 16, the market has been in a slide. Both styles have suffered, although value has held up better. As a result, the fund's 8% gain for the year through Tuesday was only a shade behind the index. The 104-stock fund kept pace with the benchmark by doing what it always does: pursuing growth at a reasonable price, says fund manager Tyler Smith.

An interview with Morningstar's Don Phillips
From The Chicago Tribune
Don Phillips, ceo of Morningstar reveals his feelings about the mutual fund industry in an interview with The Chicago Tribune. In the Q&A he says he believes mutual funds and stocks can be interchangeable commodities. The price of trading stocks has come way down with discount brokers, he said, leveling the playing field between institutions and individuals. He also believes that the mutual fund industry can't continue to grow at the same pace but it's wrong to say that mutual funds' day has passed. In regard to fees he said, "I think fund companies are doing better. I think, though, they are not doing as well as they could."  

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