BOSTON (TheStreet) -- Investors looking for direction in the stock market from star fund managers of the past decade, such as Bill Miller, Ken Heebner and Bruce Berkowitz, have realized they're sometimes as confused as the rest of us are.Unprecedented events such as the near-default of U.S. government bonds, a painful European debt crisis that seems to have no end and natural disasters abroad and at home have come to a head, pummeling almost everyone's portfolio, save for the extraordinary. Those include Warren Buffett (a sweetheart deal brokered with Bank of America ( BAC) last week that will give him $300 million a year in special dividends), Carl Icahn (a reported $2 billion windfall by betting against U.S. stocks this month) and John Thaler (his JAT Capital Management hedge fund is among the best performers in the world this year, up more than 30%). The benchmark S&P 500 Index of U.S. stocks has fallen 6.6% this year, sending mutual fund investors for the exits -- or at least to the relative safety of bond funds as they see returns suffer on once high-flying funds. But there are stock-fund managers building reputations as they assemble wealth for clients. They may not be stars, but they soon may be if their hot hands continue.
|Donald Yacktman has handed investors 12% average annual returns over 10 years, five times that of the S&P 500.|