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By Michael Breen | 05-28-2009 04:06 PM

Taking Advantage of the Stimulus

Glenn Fogle, manager of American Century Vista, says a lot of the U.S. monetary stimulus is going to stimulate other economies and picks commodities over health care.

Mike Breen: Greetings. This is Mike Breen coming to you from the 2009 Morningstar Investment Conference. We're here with Glenn Fogle, who is the manager of the American Century Vista portfolio TWCVX. He's been there for more than 15 years. The fund has a fantastic long-term record. Welcome, Glenn.

Glenn Fogle: Thank you.

Breen: You had an interesting year in '08. Everyone had a tough time and you took some hits. The fund has a great long-term record. Are there any particular things with the model maybe you can explain? Or your system that you kind of learned to tweak in a tough environment like '08?

Fogle: Mike, we've been investing at American Century in this model since the 1970s, and we've been learning more about it as we go along. One thing we've learned is that it benefits from persistent trends, and it benefits from dispersion of returns. Over the last few years in the market stocks have been becoming more highly correlated. So the difference between good stocks and bad stocks has been less. Then in 2008, we discovered what happened when trends reverse. All the trends that were working for us came to a halt in the summer and everything began to collapse. And there really wasn't any place to play defense for a while.

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