11th Dec 2009 by Michael Haltman
Like the shopper that goes to Sym's instead of Barney's, a value mutual fund investor is looking for the potential of growth and income while trying to minimize risk as much as possible. The fund manager will be looking for those company's that are for one reason or another out of favor, and therefore not trading at the price the manager feels they are worth. As the theory goes, when the rest of the market sees what the manager sees, the appreciation will come. The problem can come in that these stocks were trading at a discount for a reason, and when the reason becomes known will decline even more, or that they just might trade at a discount for an extended period of time.
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