This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Looking Past Scandal for a Few Good Managers

Contrary to public opinion, the entire mutual fund industry is not rotten.

In the good old days -- say four months ago -- my primary function as a mutual funds columnist was to hunt for solid fund offerings for readers. Ever since New York Attorney General Eliot Spitzer dropped the bomb on Sept. 3 that some mutual funds have allowed hedge funds and others to make abusive trades of their offerings, this gig has more closely resembled a crime reporter's beat. (Happily so far, none of the funds I have highlighted over the past year or so have turned up on the scandal sheet.)

For today's column, I'm going to put aside talk of scandal and flag some lesser-known mutual funds that are worthy of your consideration. In each case, I've chatted up the fund's skipper (or co-skipper, as the case may be) to hear their outlook for 2004 and the stocks they favor.

Oh, and I must add that it is unlikely these funds will flame out in scandal, for a variety of reasons. First, they're too small to lure market-timers -- hot money would swell their asset bases and the rapid-fire trading would stick out like a sore thumb. Second, the funds espouse a value-oriented, long-term philosophy that wouldn't provide the daily volatility needed to give the one-day pop that timers crave. Third, while I haven't had the managers over for dinner or anything, the firms and their skippers strike me as a scrupulous bunch that wouldn't cotton to outsiders gaming their funds. Besides, they all have most of their personal wealth tied up in the funds -- so why would they allow a timer to pick their pockets?

But enough about scandals. Let's get to the funds.

Mosaic Funds' Rich Eisinger

Along with Jay Sekelsky, Rich Eisinger co-manages two great offerings from the Mosaic family of funds: The large-cap blend (MINVX) Mosaic Investors fund and the (GTSGX) Mosaic Mid-Cap fund. These value-oriented funds tend to trail the sprinters during the bull runs but crush the competition during the rough patches. That's led to impressive performance over the long haul. The Mid-Cap fund's five-year average annual return of 11.89% is good for the top 22% of its peers, while the Investors fund's 3.89% five-year average annual return ranks in the top 12% of all large-cap blend funds, according to Morningstar.

1. What is your outlook for 2004?

We really are a bottom-up, stock-picking firm. Having said that, it's hard not to be cautiously optimistic about the economy -- with all the positive reports. However, a lot of the economic strength is priced into the stock market, which makes it tough to find good ideas.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,879.77 +74.97 0.42%
S&P 500 2,070.13 -0.52 -0.03%
NASDAQ 4,763.8540 -1.5260 -0.03%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs