Firms that focus on value stocks have been slammed recently, as financial stocks like
Several superstar managers of mutual funds and hedge funds are down 20% or more this year, depending on how heavily they are invested in big-name financials. Some value investors like FPA Capital Funds Robert Rodriguez are up this year, thanks to large cash holdings.
Legg Mason is the second-largest stockholder of
Some question whether these managers are too close to their picks to dump the losers.
"These are not the most enjoyable of times," admitted Richard Pzena, of
In the past, Pzena dumped several of his favorite stocks when their prospects dropped, but he is currently holding on to shares like Fannie, Freddie and Citigroup Inc.