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Financials Funds Show Pain and Gain

After a great 2000, this year has been more of a mixed bag.

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How you view the recent performance of financial stocks depends on where you sit.

So far, 2001 could hardly be more different than 2000. In last year's second half, the rising tide of expected Federal Reserve interest-rate cuts and renewed interest in value investing lifted all specialty-financial funds. The category as a whole gained 27%, in a year when the S&P 500 declined 9%. All but one of the group's funds managed to post double-digit gains.

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Scott Cooley does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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