Chuck Jaffe of MarketWatch fame writes: Suppose you could be one of the first investors into a new mutual fund by one of the greatest money managers of the past two decades. Sounds great. But what if that manager’s specialty is an area of the stock market that’s currently out of favor?
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That’s precisely the quandary facing investors who are considering the new Grandeur Peaks mutual funds, opening on Oct. 17 and managed by former Wasatch Funds portfolio managers Robert Gardiner and Blake Walker.
Would-be buyers have to balance the enticement of a new fund and a star manager with the idea that the fund is likely to specialize in small- and micro-cap investing at a time when that part of the market has been hammered.
Truth be told, it’s a real question how many investors will notice, let alone be willing to take a flyer on a new fund regardless of its pedigree….
Read more at http://www.marketwatch.com/story/star-manager-new-funds-hard-questions-2011-10-09?mod=MWCommentaryandBlogs&mod=marketwatch
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