The JP Morgan Large Cap Growth Fund could be headed for trouble.

Chuck Jaffe's Marketwatch blog recaps an appearance by David Trainer, president of Nashville-based research firm New Constructs, on the show MoneyLife With Chuck Jaffe, and repeat Trainer's claims that the JPM fund is invested in too many bad stocks.

Trainer classifies all stocks in the large-cap space as on a scale from "very attractive" to "dangerous," and says that "you'd be lucky to get 30 percent of the assets in the JPMorgan Large Cap Growth fund in attractive or better stocks," a lower figure than for its benchmark.

“I can tell you that many mutual fund portfolio managers I have met with have little to no concern about whether or not they are in the smart stocks,” Trainer told Jaffe. “They care about assets under management more than anything else.”

The full blog post is here. 

Edited by: HFD


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