Bait and Switch
This past weekend, The Wall Street Journal wrote that "mutual funds rally by not sticking to a style." The word "rally" caught my attention, quite sharply, as the stock market has mostly behaved otherwise, but it turns out that the Journal did not intend its headline literally. The article’s actual argument was that some flexible-stock funds are very good. All right, that FPA Crescent (FPACX) is very good.
True that. The headline asserts the existence of a trend--the recent profits that have accrued to funds, in plural, for not sticking with one investment style--and then the article profiles the long-term results for the single fund of FPA Crescent. Which, ironically, hasn't been all that flexible, by the definition of the article itself. The author defines flexibility as movement between the Morningstar Style Box grids.
John Rekenthaler does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.