Lipper's Don Cassidy on KTLK AM-760
Thursday, August 22, 2002
Q. Well, Don, now that we've had a month of recovery in stocks and equityfunds, can you tell us how the Colorado-based mutual funds look as we lookback over the bear market and the recent rally?A. Definitely. And I think some of your listeners may be surprised by howmuch good news there actually IS.
Q. Really?! I had the impression all the emphasis on large-cap growth andtechnology had been a major negative factor.
A. Well, THAT is true. And unfortunately a big part of the money was wherethe hot upside action HAD been. But if you look at choices that peoplehad, it's surprisingly positive.
Q. How so?
A. Well, for instance, there are 27 out of 126 different local funds thatare actually UP, or down only slightly, since January 1.
Q. Right, but are they all BOND or MONEY MARKET funds?
A. Pretty good guess, but not ALL. Five of the 27 are various types offocused equity funds (no diversified ones)...
- Invesco Gold & Prec Metal +37%
- Icon:Leisure & Cons Stpl -1%
- Icon:South Europe Reg -3%
- Marsico International Oppty -4%
- Icon:Materials -4%
this is against declines in doubledigits by the major averages!
All of the rest that are up are indeed bond or money market funds
Q. OK, but how about going back to the top of the bull market in March2000? Are ANY equity funds up since then?
A. That, I think, is where the huge surprise comes... there are a baker'sdozen up since March 22, 2000 when the Dow was above 11,000.
- 5 from Icon
- 4 from Invesco
- 2 from Berger
- 1 from Westcore
- 1 from Impact (based in Steamboat Springs)
and an even bigger positive surprise is that of the 33 funds or about30% of the population that ARE up, the top 8 in order are NOT bond fundsbut stock funds:
- Icon:Leisure & Cons Stpl +51%
- Invesco Gold & Prec Metal +46
- Icon:Financial +38
- Impact: Total Return +33 MCVE
- Berger Sm Cap Val +31
- Icon:Energy +28
- Invesco Rl Est Opp +27
- Berger Mid Cap Val +26
Q. What do you make of that?
A. Value has held up tremendously; and some sectors are always leading thepack. I think that is shown by Invesco and Icon, which both have lists ofspecialty funds, dominating the winners lists during the bear market.
Q. Always something new and interesting in that Lipper goldmine of data!
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Don Cassidy is a Senior Research Analyst at Lipper specializing in fund flows, exchange-traded funds, (ETFs), closed-end funds, equity fund performance, and author of Trading on Volume (McGraw-HIll).
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