Over the past two years, Lowenstein has given speeches and written articles that parsed the performance of the industry's largest funds and found them lacking. He discovered that a group of value funds run by buy-and-hold investors repeatedly beat the largest funds from household-name fund companies. The value investors he studied also avoided buying almost all the bubble-year debacle stocks. (Although one bought Nokia Corp. and sold it for a 1,900 percent profit.)
In a January paper he wrote for the Center for Law and Economic Studies at Columbia Law School, which later became an article for Barron's, he compared 15 large-cap growth funds with 10 value funds.
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