It's no surprise that brand-name fund shops such as Fairholme Funds [see profile]
have had difficulties with their performances in the current choppy market, but their investors are sticking by them through thick and thin -- albeit cautiously, the Wall Street Journal reports
For example: Fairholme, through July, reportedly has a minus 12.6 percent return and ranks in the bottom two percent; the Keeley Small Cap Value fund [see profile]
has averaged minus 2.5 percent a year for the last three years; CGM Focus [see profile]
has averaged a minus 13.5 percent for the last three years; and Hussman Strategic Growth's [see profile]
performance has lagged since 2009, including last year's minus 3.6 percent return.
But advisors such as Harvey Rowen, chief executive at Starmont Asset Management LLC, in San Ramon, California, are not deterred. Starmont told the pub that he will keep some client money in the fund "to play the long-term prospect of a meaningful return."
And San Francisco-based Malcolm Gissen early last year reportedly pulled "a couple million" dollars of client money out of the CGM fund, because of lackluster returns. But Gissen told the pub: "Don't abandon a good fund just because it has had a bad year. You have to give managers an opportunity to perform.''
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