Wednesday, March 14, 2007

Bear Claw 
One of the most interesting things about yesterday's stock market selloff is the way mutual fund losses were distributed among Morningstar's equity style boxes:

So-called value funds - more prone to paying dividends and, in theory, at least, selling at more conservative multiples of earnings, bled more than their headier growth cousins. To wit:

Large cap Value: -2.1% Large cap growth: -1.8%
Mid cap value: -2.1% Mid cap growth: -2.0%
Small cap value: -2.9% Small-cap growth: -2.2%

Why is that? Perhaps because financial services companies and REITs are more heavily represented in the value category? Possibly. Don't have time to dig, though. Glad I lightened up on internationals and REITs both last year. Should have lightened up even more, in retrospect, but whatever.

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