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"Focused" Funds Require Your Focus Before You Invest
As if investing in emerging markets is not risky enough, we now have a new flavor to select - the Focused Emerging Market Fund.
And other funds that do not invest in emerging markets also may be "focused".
To invest in a focused fund, investors need to love - and know - their fund manager. The reason is simple: ordinary diversification, by holding 50 to 100 companies, for example, is removed. The Focused Fund manager chooses 20 or 30 stocks, and makes bigger bets on those stocks.
These funds are popular Focused Funds: Clipper Fund, Oakmark Select Fund, Yacktman Focused Fund and Janus Twenty Fund.
Source: Wall Street Journal, May 11, 1998
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