FYI: It's been a rough few years for stock-picking mutual-fund managers, and investors keep dumping them for the higher returns and lower expenses of index funds.
Now, stock pickers say, market conditions are starting to turn in their favor as stocks increasingly go in different directions rather than moving in unison. Many are feeling so confident that they're paring down the number of stocks they hold to concentrate on the select few they expect to be big winners.
A concentrated approach gives stock pickers the potential to achieve much better returns than an index fund. But it can also increase risk.
That means investors should pay close attention to another number when checking out a mutual fund. Along with fees, returns and volatility, have a look at how many stocks a fund owns. It may be fewer than you think.
Regards,
Ted
http://bigstory.ap.org/article/49f7fa7b7cf64c45a2aed9bb9245c90c/seeing-opportunity-stock-pickers-narrow-their-portfolios
