Tuesday, September 13, 2011

The awesome fund that escaped the bank meltdown

Appleseed Fund’s ethics rule saved investors millions!

According to Marketwatch early last summer, as the Dodd-Frank financial reform bill moved through Congress, Adam Strauss looked at what was going on and was disgusted. Strauss is co-manager, with his brother Joshua, of the “socially responsible” Appleseed mutual fund APPLX +0.08% , based in Chicago. And they were so appalled at the way the big banks were fixing the system in their favor, once again, that the two brothers took a bold move.

They announced that they were barring the stocks of too-big-to-fail banks from their fund — on ethical grounds. In other words, they were going to start treating some of America’s biggest and most famous financial institutions like casino operators or cigarette makers.

No Goldman Sachs GS +0.66% . No J.P. Morgan JPM +1.06% . No Citigroup C +0.82% , Morgan Stanley MS -1.51% , or Bank of America BAC +1.00% . It wouldn’t matter if any of the stocks looked like good values. It wouldn’t matter how much these banks were making in profits. Henceforward, Appleseed wouldn’t touch them.

How’s that turning out? Ha! It’s saved their investors millions of dollars….

Find out more at http://www.marketwatch.com/story/the-fund-that-escaped-the-bank-meltdown-2011-09-13

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