Value-oriented mutual funds are once again stockpiling cash in their investment portfolios because ongoing market volatility has provided few buying opportunities, reports.
For example, the Longleaf Partners fund, an 8.2 billion value mutual fund offered through Longleaf Partners Funds, closed to new investors on July 16 because new assets are piling in and cash is dragging down its overall performance. The fund currently has 29% of its assets in cash. A statement from the fund's board said new shareholders will be welcomed when the market provides more attractive investment opportunities.
Other value fund managers are turning away new investors due to what they perceive as a sour market. FPA Capital fund was recently closed to new investors by its manager, Robert Rodriguez, with more than 30% of its assets in cash. In addition, cash balances in the Weitz Value fund and Clipper fund respectively rose to 28% and 33%.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.