CNBC writes: Here are four high-profile, respected fund managers who have struggled this year:
Bill Gross, who was named Morningstar's fixed-income manager in the decade ending 2009, has seen his $246 billion Pimco Total Return Fund eke out a mere 3 percent gain this year, almost half that of the Barclay U.S. Aggregate Bond Index, the fixed-income benchmark. Pimco Total Return's performance this year puts it in the 88th percentile versus its peers, but the fund beats all but 5 percent of its peers over the past 15 years.
Gross made no bones about his strategy shift this year: He dumped U.S. debt holdings, principally Treasury and agency bonds, early in the year, saying he expected faster economic growth would contribute to inflation . The Federal Reserve also had been expecting a pickup in economic growth in the second half of the year. That didn't happen. "The portfolio's 1.1% return from July 1 through Aug. 18 has been subpar, and has dragged its year-to-date return to the group's bottom quartile," reports fund-ranking firm Morningstar.
The $13.4 billion Fairholme Fund is synonymous with manager Bruce Berkowitz and his against-the-tide bets….
Read more at http://www.cnbc.com/id/44342456
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