Know Your Fund Company's Achilles' Heel
Ideas for complementing a portfolio skewed toward one fund company.
Fund companies sometimes move many funds in lock step, for good and bad.
For example, over the summer, PIMCO's bullish bet on long-term inflation-protected securities in a bunch of its funds stung. Interest rates rose while inflation expectations fell, a double whammy for long-term Treasury Inflation-Protected Securities. It wasn't a disaster for PIMCO, but it did take a bite out of a wide swath of its funds.
Russel Kinnel has a position in the following securities mentioned above: OAKLX, FTABX, ARTGX, FLTMX, DODIX. Find out about Morningstar’s editorial policies.