MutualFundWire.com: Odd Lots, May 17, 1999

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Monday, May 17, 1999

Odd Lots, May 17, 1999

Berger, Stein Roe start trend
From Morningstar.net
The recent shakeups at Berger and Stein Roe are just the start of a trend, argues columnist John Rekenthaler. He points out that no load fund groups are failing to pull in assets (with the exceptions of Fidelity, Vanguard, and T. Rowe Price). His prediction: Look for the long awaited industry consolidation to begin.

Banks fail to sell own funds
From American Banker -- subscribers only
Bank sales of their own funds fell, according to a survey for the Bank Securities Association. Kenneth Kehrer Associates surveyed 26 bank brokerages and found that their sales of mutual funds were flat. Altogether, their own funds accounted for just 7.9% of sales, a decline from 13.2% last year and 10.5% in the fourth quarter. The publication explains that the dropoff may be because value funds are out of favor and banks end to have a value bent. Another explanation is that a handful of funds are gathering assets, and those that are, are not being offered by banks.

Magellan's Stansky is cautious
From The Wall Street Journal -- subscribers only
Fidelity released its Annual Report for the Magellan Fund. In it manager Robert Stansky sounded a cautious note, warning that corporate earnings may not justify stock prices and that the market may be vulnerable to rising interest rates.

Funds in the Press

Latin funds topped the charts last week, according to SmartMoney in its weekly fund performance wrap up.
Robert Hagstrom, manager of Legg Mason Focus Trust, is a big believer in Warren Buffett. So much so that 20% of his fund is invested in Berkshire Hathaway. Marla Brill also reports in the Boston Globe that he has written two books on Buffett.