Friday, July 15, 2011

Stat of the Day: June's Sum of US Equity Fund Outflows, Index Fund Inflows Highest Since '09

Whew! That is a complex header. According to InvestmentNews  investors fled actively managed US equity funds at the same level as the March 2009 generational low. Naturally the market has doubled since then so the percentage of the total market isn't comparable, but it does highlight the fear factor in the market. In a way, this backs up the market selling cyclicals very hard and consumer staples rallying.

What was really staggering is that Fairholme Fund (FAIRX) had outflows of $1B. After being the manager of the decade, investors were very quick to flee Bruce Berkowitz in June. What a tough industry! Maybe I should reconsider.

Via InvestmentNews:


  • U.S. investors pulled $19 billion more out of actively managed U.S. stock funds in June than they put in, while U.S. index stock funds saw $1.1 billion in net inflows. 
  • March 2009 - investors pulled $18.3 billion out of actively managed U.S. stock funds than they put in, and passively managed equity funds saw $2.4 billion in inflows.
  • Big losers among actively managed equity funds in June were the American Funds Growth Fund of America (AGTHX), which lost $2.9 billion; the Fairholme Fund (FAIRX), and Fidelity Investments' Magellan Fund (FMAGX), which both lost $1 billion, and the Davis New York Venture Fund (NYVTX), which saw $780 million in net outflows.



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