Growth-Fund Managers Take Different Tack

Growth funds had a clear mission a year ago: buying stocks with growing earnings.

But these days, most companies are reporting shrinking earnings, and it's hard to fill portfolios with true growth stocks. That's forcing longtime growth managers to alter their strategies.

Some funds have shifted their sector weightings, shunning troubled industrials and emphasizing companies that focus on expanding niches in health care or technology. Other portfolio managers have lowered their sights. Unable to find fast growers, they're taking companies that are suffering relatively small earnings declines. ...