Because of the havoc that 2008 wreaked on so many investors portfolios, 46% of the 468 diversified U.S. equity funds that have had the same manager for the past decade, have negative returns for the 10 years ended Feb. 28, The Wall Street Journal reports. By comparison, the S&P 500 fell 3.4% on average over the past 10 years.
One fund whose track record was shattered is the Hodges Fund, which declined 49.5% last year and is down 11% year-to-date. Before then, it was one of the best-performing funds around.
Portfolio manager Donald Hodges says he is more then embarrassed about what the market has done to his clients. You carry it with you every place you go because you have friends investing with you, he said. Thus, he is reaching out to his clients to calm their fears and has become more conservative about his portfolio.
Another fund that was consistently in the top quarter over the past 10 years through 2007, the Legg Mason Growth Trust, fell 60% in 2008 due to exposure to financial services.
The Neuberger Berman Partners Fund, likewise, had a great track run but was pummeled with a 52% loss in 2008. Our numbers were fantastic through June, and then we fell off the cliffmassively, said portfolio manager Basu Mullick.