We're on the lookout for stealth asset growth.
This article originally appeared in Morningstar FundInvestor, an award-winning newsletter that presents investment strategies and tracks 500 funds.
Many of the fund industry's most successful managers attract attention from not only mutual fund investors, but also institutions and high-net-worth investors, who hire them to run other types of accounts. In addition, these managers may subadvise funds from other companies. Thus, your favorite manager might be running a lot more money than you suspect.
Fortunately, funds are new required to disclose such information in their annual Statement of Additional Information. Fund shops must send that document to investors (for free) upon request, and a number of shops also feature them on their Web sites. The SAI is generally long, but a quick check in the table of contents for "investment advisor" should take you to the right section. Below is our take on some of the more prominent managers who carry a heavy, somewhat hidden load.
Tom Marsico is a veteran growth investor with a stellar track record, so it may not be a surprise that he manages money outside of the three large-growth charges listed above, which have about $8 billion among them. When their assets are combined with those of the 10 other mutual funds Marsico runs, as well as various other accounts, Marsico is responsible for $54 billion.
Although that pool is divided into two strategies, one is essentially a modestly more concentrated version of the other. Between Marsico's penchant for loading up on his favorite picks and tendency to trade around positions, there's reason to be a bit concerned about the size of his asset pool. But because most of his holdings are highly liquid stocks, we still think he has room to maneuver. That said, we'll be keeping close tabs on this situation.
PIMCO Emerging Markets Bond
Michael Gomez, who took over this fund in October when emerging-markets guru Mohamed El-Erian left the firm, has very big shoes to fill. El-Erian had steered this $2.8 billion fund to superb results since the 1997 inception of its institutional share class.