Jump to content
Sign in to follow this  
apteacher

Do Fund Managers Eat Their Own Cooking?

Recommended Posts

In a different thread, Joe raised the question of whether agents invest in the same products that they sell. A related question is: do fund managers eat THEIR own cooking? I would like to see an SEC requirement that requires funds to disclose how much money a manager has invested in his own fund. And I don't want to see it buried in some obscure SEC form that few will see. I want to see it in a fund's annual statement that goes out to shareholders.

Share this post


Link to post
Share on other sites

In a different thread, Joe raised the question of whether agents invest in the same products that they sell. A related question is: do fund managers eat THEIR own cooking? I would like to see an SEC requirement that requires funds to disclose how much money a manager has invested in his own fund. And I don't want to see it buried in some obscure SEC form that few will see. I want to see it in a fund's annual statement that goes out to shareholders.

 

 

Ap:

I would guess most of these mangers do not eat their own cooking. If they did, they would die malnourished. By the way, I have a meeting of the minds on Monday.

fe

 

Share this post


Link to post
Share on other sites

One more thing: I don't want to see a meaningless figure that is disclosed, e.g., that the manager has "between $10,000 and $1,000,000 in the fund." Nope. I want to see the actual value of his/her holdings in the fund.

Share this post


Link to post
Share on other sites

 

In a different thread, Joe raised the question of whether agents invest in the same products that they sell. A related question is: do fund managers eat THEIR own cooking? I would like to see an SEC requirement that requires funds to disclose how much money a manager has invested in his own fund. And I don't want to see it buried in some obscure SEC form that few will see. I want to see it in a fund's annual statement that goes out to shareholders.

 

 

Ap:

I would guess most of these managers do not eat their own cooking. If they did, they would die malnourished. By the way, I have a meeting of the minds on Monday.

fe

 

 

Share this post


Link to post
Share on other sites
Guest TR1982

One more thing: I don't want to see a meaningless figure that is disclosed, e.g., that the manager has "between $10,000 and $1,000,000 in the fund." Nope. I want to see the actual value of his/her holdings in the fund.

 

 

AP,

Many funds managers do eat their own cooking. Morningstar publishes a list of all fund managers on their list of the top 500 funds who have more than a million dollars invested in their fund. They publish it in their Fund Investor magazine which comes out once a month.

Share this post


Link to post
Share on other sites

Thanks for the tip, TR. However, I would still like to see a regulation requiring that this info be included in a fund's annual statement.

 

I think I am on the verge of becoming a pain in the activist.

Share this post


Link to post
Share on other sites

One more thing: I don't want to see a meaningless figure that is disclosed, e.g., that the manager has "between $10,000 and $1,000,000 in the fund." Nope. I want to see the actual value of his/her holdings in the fund.

 

 

The problem with this is the same problem that lies with the listings of a fund's "top holdings"...by the time it is actually published, the information is dated. I imagine that a lot of managers would buy a "window dressing" stake in their fund on December 29th in anticipation of the annual report, too, and flip them at first opportunity. But I like the idea itself, if there could be found a way to make it practical.

 

Share this post


Link to post
Share on other sites

FT,

Absolutely FT, I agree with you on this.

AP, great news, the problem has been addressed by John Bogle's genious.

There is one exception to the delayed report on holdings. Lets remenber that besides low costs, index funds have the same holdings, as long as the index doesn't change, for months and sometimes for years.

Steve

Share this post


Link to post
Share on other sites

 

I've been thinking...one possible way around this "faux" reporting of holdings would be to report the fund manager's "average daily balance," sort of like my bank does on my anemic checking account. If a manager buys a million shares on Dec. 31st, his "average balance" for the quarter would be 10,000 shares, a much more accurate reflection of his "commitment" to his fund. And the manager who buys and holds his own stuff would also have his loyalty accurately reflected.

 

How you would arrive at this kind of extremely helpful (and therefore highly unlikely to ever happen) disclosure is another matter entirely.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

×
×
  • Create New...