Are Fund Managers Better Than Their Funds?

For investors still cringing at their IRAs, 401(k)s or taxable mutual funds and exchange-traded funds, are you ready to take a chance on the companies that have brought you so many unhappy returns?

"You have to be selective on the companies," says Greggory Warren, who follows the asset-management arena for the financial research firm Morningstar. "Some are in far better shape than others."

Among sell-side analysts, there are no screaming buys among publicly traded asset-management firms. Most of the screaming comes from people whose funds and their asset-management-stock prices have dropped sharply over the past 12 months, often in harmony with the broader market, but occasionally much more.

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