15
Morningstar FundInvestor
June 2
013
had loaded up on
MBIA
debt and stock in his three
funds.
Fairholme Focused Income
FOCIX
popped
11%
in one day while
Fairholme
FAIRX
and
Fairholme Allocation
FAAFX
gained about
3%
each
on a day when the market didn’t move much. They
are now in the top
2%
of their categories for the year
to date.
Former Janus Portfolio Managers Resurface at
Denver Hedge Fund
Former Janus managers Chad Meade and Brian
Schaub have joined Arrowpoint Partners, a
firm headed by Janus alumni David Corkins and
Karen Reidy.
Meade and Schaub, who had posted stellar returns
at Silver-rated
Janus Triton
JATTX
since
2006
and
at Silver-rated
Janus Venture
JAVTX
since
2010
,
left Janus on May
10
. Now, both have joined Arrow-
point, which was cofounded by former Janus port-
folio managers Corkins, who left Janus in
2007
, and
Reidy. Arrowpoint manages about $
2
.
2
billion in
assets and employs several other former Janus port-
folio managers, including Tony Yao and
Minyoung Sohn.
Arrowpoint does not have any mutual funds.
Litman Gregory Adjusts Subadvisor Lineup,
Merges Value Fund
Litman Gregory will merge the $
83
million
Litman
Gregory Masters Value
MSVFX
into the $
297
million
Litman Gregory Masters Equity
MSEFX
in
June. The firm said large shareholder redemptions
and the Masters Value fund’s poor
10
-year track
record contributed to the move. (Masters Value’s
6
.
4%
annualized
10
-year return lagged the S&P
500
Index’s
8
.
0%
return through May
17
,
2013
.)
Litman Gregory Masters Equity made changes to the
lineup of seven subadvisors that had managed
sleeves of the fund through May. It added subadvisor
Fiduciary Management and managers Pat English
and Andrew Ramer, who comanage Gold-rated
FMI
Large Cap
FMIHX
. It has added
Oakmark
OAKMX
manager Bill Nygren, who joins Harris Associates
colleague Clyde McGregor in a subadvisory capacity.
It fired subadvisors Southeastern Asset Management
and Friess Associates, and their respective man-
agers Mason Hawkins and Bill D’Alonzo. Hawkins
manages Gold-rated
Longleaf Partners
LLPFX
,
and D’Alonzo manages Neutral-rated
Brandywine
BRWIX
among other charges. Both Longleaf Part-
ners and Brandywine fell to the bottom quartile of
their respective peer groups during the trailing
five- and
10
-year periods through May
17
,
2013
.
Succession Planning at Heartland
Heartland Advisors, the parent firm of the Heartland
Funds, announced that Will Nasgovitz has been
appointed the firm’s chief executive officer. The move
was widely expected since Nasgovitz has been taking
on a larger role as his father Bill Nasgovitz nears
retirement. While Will Nasgovitz will remain a port-
folio manager at
Heartland Select Value
HRSVX
and will continue to oversee a separate account, he is
stepping down from his comanager role at Bronze-
rated
Heartland Value
HRTVX
.
Investors Seek Protection From Rising Rates
A clear trend in flows this year has been investors
moving from some government-bond funds to funds
that offer the prospects of either making money when
rates rise or at least losing less. Bank-loan funds
and unconstrained funds lead investors’ buy lists.
Through April, foreign large-blend funds have taken
in the most new money in
2013
, followed by bank-
loan funds and diversified emerging-markets funds.
Large-growth, intermediate-government, and infla-
tion-protected bond had the most outflows.
The top-selling funds were
PIMCO Unconstrained
Bond
PUBDX
,
PIMCO Income
PONDX
, and
Templeton Global Bond
TPINX
. The most redeemed
funds were
American Funds Growth Fund of
America
AGTHX
,
American Funds Investment
Company of America
AIVSX
, and
Vanguard
GNMA
VFIIX
.
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