More Debate: Readers Want the Truth

The public wants the truth about performance, not the lies, the excuses and the mistakes. And the public hates those who hide behind value as an alibi for poor performance. Your mail says that in spades.

For me, the most cogent piece of email I got since this whole debate began is from a reader who just got his Forbes, which contains the attack on my performance by David Dreman, the Mr. Value of Forbes.

Smarter Money: Join the discussion onTSC Message Boards. If you recall, Dreman took me to task for falling behind the Nasdaq average with my 30% return after all fees for the past five years. Dreman says that given my disdain of the fundamentals, I should have done better. He blasts me because he questions my tax efficiency.

Well, lo and behold, Mr. Dreman has a record, too, and this reader, who had just fired Dreman as a manager, had the goods. Get this: (KDHAX Quote)Kemper-Dreman High Return Equity fund returned a minus 18% (adjusted for sales charge) last year, and our reader still had to pay very hefty taxes as Dreman apparently took lots of capital gains even while he was racking up big losses. This, during a year when all averages were up. Dreman has a problem with my tax efficiency last year? What's worse than losing big money and then paying taxes on it to boot?