Fund managers acknowledge their role in recession

Top fund managers confessed the fact of their several mistakes in managing funds during current economic recession.

They had missed buying opportunities and have been late to sell certain funds by their own admission at Morningstar Inc.’s annual investment conference in Chicago city.

Bruce Berkowitz, founder of Fairholme Capital Management LLC of Miami admit the majority of his time was spent to react to the market’s unpredictable leaps. As he said: “We could have done more but we weren’t fast enough.”

Another fund manager, Wally Weitz, president of Omaha, Neb.-based Wallace R. Weitz & Co., expressed his regrets at losing an opportunity to sell many stocks at the time of recognition of the start of the recession more than a year and a half ago.

Meggan Walsh, Houston-based senior portfolio manager and lead portfolio manager of the Aim Diversified Dividend Fund of Houston-based Invesco Aim Management Group Inc., said about her doubts regard to appropriateness of Capital One Financial Corp. of McLean, Va shares purchase. As she said, “Capital One is our problem child. It’s too soon to tell if it’s a mistake.”

But Bill Nygren, portfolio manager of the Oakmark Fund for Chicago-based Harris Associates LP, said he is sticking with Capital One. As he believes Capital One has potential for great value, because consumers in his point of view want these types of companies to exist. 

Thomas Marsico, chief executive and chief investment officer of Denver-based Marsico Capital Management LLC, grieves over his late purchase of health care companies. In order to rectify wrong things, he bought them recently and still believes in opportunity of that sector.