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.
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.
Comments:
Post a Comment
