1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies

Industry Critic Offers a 'Bottom-Up' Strategy

October 06, 2006

Louis Lowenstein, a button-down 81-year-old emeritus finance and law professor, is positioning himself to become the mutual fund industry's most urbane critic. Listening to him talk about his book in progress, which he promises will uncover the "shame" of the fund industry, is like watching a man sharpen his sword to do battle with a tank. One can't help but wish him well.

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.

Read the complete article


Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:


More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.

Performances of the stocks mentioned by


User Generated Screeners


DANGORDONEPS GROWTH 5-29-17
DANGORDONEPS GROWTH 5-28-17
Jefulford2 P/Es under 10
HOLKLSUMini Group Low Shiller P/E
doonich5% within 52wk
JefulfordNegative EV
JefulfordP/graham <0.5
JefulfordP/TB <1
JefulfordP/TB <0.7
JefulfordNCAV <1
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK