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Wow. A blast from the past. The very first story in the very first issue of the Observer was entitled "Successor to 'the worst best fund ever.'" The story started this way:
They’re at it again. They’ve found another golden manager. This time Tom Soveiro of Fidelity Leveraged Company Stock and its Advisor Class sibling. Top mutual fund for the past decade so:
Guru Investor, “#1 Fund Manager Profits from Debt” Investment News, “The ‘Secret’ of the Top Performing Fund Manager” Street Authority, “2 Stock Picks from the Best Mutual Fund on the Planet” Motley Fool, “The Decade’s Best Stock Picker” Mutual Fund Observer, “Dear God. Not again.”
The first sign that something might be terribly amiss is the line: “Thomas Soviero has replaced Ken Heebner at the top.”
...
The fund managed the highest returns of any fund in the preceding decade (nearly 15% annually during "the lost decade"), yet its average investor either made little (about 3% in the no-load shares) or actually lost money (a small negative return in the Advisor class shares).
The fund has had a rough past four years. Assets are down 50% from their peak. Mr. Soveiro had been expanding the franchise but has lately been forced to (or has chosen to) give up his role in other funds. And now, not surprisingly, this.
oooooooh, you gotta (come on, sing along!) Know when to hold 'em [that he did] Know when to fold 'em [not so much] Know when to walk away [couldn't do it] Know when to run [say what?]
On the first of the 4, he was really really good; when times were ripe, he was a master at working levaraged debt. As for the other 3? IMO, slow-motion CG evaporation....or, put another way, it wasn't the fall that hurt so badly--- it was the landing! He knew how to get you alpha, but it was up to you to keep it, because for him the pedal was never to leave the metal.
And, so now, with this departure, we once again are faced with the forever question: if you want to have a portion of your investment money dedicated to a stand-alone MF composed of convertible securities, are there any good choices of an aggressive nature in the entire MF "universe"? I don't see one. Can't anyone do it well?
Desertion. LOL. On a serious side note. As a rule of thumb, if there is a manager change I sell first and ask questions later. I think more often than not, that will prove to be sound decision. However, sometimes it does not work out so well.
When LSOFX manager changed, I sold. It is one of the better performing L/S funds this year. If I had done a little more research, I might have concluded the new managers are not that bad and manage the Prospector funds.
I have the 2 Prospector funds and LSOFX on my s***storm hit list.
Comments
Regards,
Ted
Fidelity Website:
https://www.fidelity.com/mutual-funds/information/portfolio-manager-appointments
They’re at it again. They’ve found another golden manager. This time Tom Soveiro of Fidelity Leveraged Company Stock and its Advisor Class sibling. Top mutual fund for the past decade so:
Guru Investor, “#1 Fund Manager Profits from Debt”
Investment News, “The ‘Secret’ of the Top Performing Fund Manager”
Street Authority, “2 Stock Picks from the Best Mutual Fund on the Planet”
Motley Fool, “The Decade’s Best Stock Picker”
Mutual Fund Observer, “Dear God. Not again.”
The first sign that something might be terribly amiss is the line: “Thomas Soviero has replaced Ken Heebner at the top.”
...
The fund managed the highest returns of any fund in the preceding decade (nearly 15% annually during "the lost decade"), yet its average investor either made little (about 3% in the no-load shares) or actually lost money (a small negative return in the Advisor class shares).
The fund has had a rough past four years. Assets are down 50% from their peak. Mr. Soveiro had been expanding the franchise but has lately been forced to (or has chosen to) give up his role in other funds. And now, not surprisingly, this.
David
I went with him early on and made a bit, and bailed only recently. One of my kids too.
Same for me w Heebner.
I sure would never guess that I had more patience than many investors.
>> retired ... the business altogether
Don't see that anywhere, but leaving Fido, yeah
Know when to hold 'em [that he did]
Know when to fold 'em [not so much]
Know when to walk away [couldn't do it]
Know when to run [say what?]
On the first of the 4, he was really really good; when times were ripe, he was a master at working levaraged debt. As for the other 3? IMO, slow-motion CG evaporation....or, put another way, it wasn't the fall that hurt so badly--- it was the landing! He knew how to get you alpha, but it was up to you to keep it, because for him the pedal was never to leave the metal.
And, so now, with this departure, we once again are faced with the forever question: if you want to have a portion of your investment money dedicated to a stand-alone MF composed of convertible securities, are there any good choices of an aggressive nature in the entire MF "universe"? I don't see one. Can't anyone do it well?
On a serious side note. As a rule of thumb, if there is a manager change I sell first and ask questions later. I think more often than not, that will prove to be sound decision. However, sometimes it does not work out so well.
When LSOFX manager changed, I sold. It is one of the better performing L/S funds this year. If I had done a little more research, I might have concluded the new managers are not that bad and manage the Prospector funds.
I have the 2 Prospector funds and LSOFX on my s***storm hit list.