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Fund Spy

Know Your Fund Company's Achilles' Heel

Ideas for complementing a portfolio skewed toward one fund company.

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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.