(PUB) Morningstar FundInvestor

15

Morningstar FundInvestor

June 2 013

had loaded up on MBIA debt and stock in his three funds. Fairholme Focused Income FOCIX popped 11% in one day while Fairholme FAIRX and Fairholme Allocation FAAFX gained about 3% each on a day when the market didn’t move much. They are now in the top 2% of their categories for the year to date. Former Janus Portfolio Managers Resurface at Denver Hedge Fund Former Janus managers Chad Meade and Brian Schaub have joined Arrowpoint Partners, a firm headed by Janus alumni David Corkins and Karen Reidy. Meade and Schaub, who had posted stellar returns at Silver-rated Janus Triton JATTX since 2006 and at Silver-rated Janus Venture JAVTX since 2010 , left Janus on May 10 . Now, both have joined Arrow- point, which was cofounded by former Janus port- folio managers Corkins, who left Janus in 2007 , and Reidy. Arrowpoint manages about $ 2 . 2 billion in assets and employs several other former Janus port- folio managers, including Tony Yao and Minyoung Sohn. Litman Gregory Adjusts Subadvisor Lineup, Merges Value Fund Litman Gregory will merge the $ 83 million Litman Gregory Masters Value MSVFX into the $ 297 million Litman Gregory Masters Equity MSEFX in June. The firm said large shareholder redemptions and the Masters Value fund’s poor 10 -year track record contributed to the move. (Masters Value’s 6 . 4% annualized 10 -year return lagged the S&P 500 Index’s 8 . 0% return through May 17 , 2013 .) Litman Gregory Masters Equity made changes to the lineup of seven subadvisors that had managed sleeves of the fund through May. It added subadvisor Fiduciary Management and managers Pat English and Andrew Ramer, who comanage Gold-rated FMI Large Cap FMIHX . It has added Oakmark OAKMX manager Bill Nygren, who joins Harris Associates colleague Clyde McGregor in a subadvisory capacity. Arrowpoint does not have any mutual funds.

It fired subadvisors Southeastern Asset Management and Friess Associates, and their respective man- agers Mason Hawkins and Bill D’Alonzo. Hawkins manages Gold-rated Longleaf Partners LLPFX , and D’Alonzo manages Neutral-rated Brandywine BRWIX among other charges. Both Longleaf Part- ners and Brandywine fell to the bottom quartile of their respective peer groups during the trailing five- and 10 -year periods through May 17 , 2013 . Succession Planning at Heartland Heartland Advisors, the parent firm of the Heartland Funds, announced that Will Nasgovitz has been appointed the firm’s chief executive officer. The move was widely expected since Nasgovitz has been taking on a larger role as his father Bill Nasgovitz nears retirement. While Will Nasgovitz will remain a port- folio manager at Heartland Select Value HRSVX and will continue to oversee a separate account, he is stepping down from his comanager role at Bronze- rated Heartland Value HRTVX . Investors Seek Protection From Rising Rates A clear trend in flows this year has been investors moving from some government-bond funds to funds that offer the prospects of either making money when rates rise or at least losing less. Bank-loan funds and unconstrained funds lead investors’ buy lists. Through April, foreign large-blend funds have taken in the most new money in 2013 , followed by bank- loan funds and diversified emerging-markets funds. Large-growth, intermediate-government, and infla- tion-protected bond had the most outflows. The top-selling funds were PIMCO Unconstrained Bond PUBDX , PIMCO Income PONDX , and Templeton Global Bond TPINX . The most redeemed funds were American Funds Growth Fund of America AGTHX , American Funds Investment Company of America AIVSX , and Vanguard GNMA VFIIX . œ