Is a Concentrated Fund a Fit for Your Portfolio?
Four questions to ask when determining whether a focused holding makes sense for you.
But Sequoia is hardly the first concentrated fund to soar, then take a nosedive, due to its heavily weighted positions. Some of the most fabled mutual funds of the past few decades have experienced a similar boom-bust cycle, including Fairholme (FAIRX), Oakmark Select I (OAKLX), and Janus Twenty T (JAVLX). Some have recovered, others not so much.
Christine Benz has a position in the following securities mentioned above: OAKLX. Find out about Morningstar’s editorial policies.