Fairholme ( FAIRX) Fund profile: Managed by Bruce Berkowitz, the fund is known for its concentrated bets as it holds only 19 stocks. It has a 76% sector bet on financials. Its poor performance has resulted in a 55% decline in its asset base this year. Performance: down 30.6%, dead last in the large-value category, with a return that is 27 percentage points below the category average. Over three years it has an average annual return of 8.4%. Assets: $8 billion Worst picks: American International Group ( AIG), the largest holding at 22% of the fund, down 53%; Sears Holdings ( SHLD), 8% of fund, down 27%; Citigroup ( C), 5% of the fund, down 43%.
Janus Overseas ( JDIAX) Fund profile: Manager Brent Lynn has a reputation as a risk taker and is willing to bet on stocks of any market value and in any market worldwide, giving the portfolio a mix of foreign and domestic stocks. But this year most of those wagers have turned against him. He took sole control of the fund in June 2003. Performance: down 32%, putting it in the 98th percentile in its foreign large-growth category, 18 percentage points worse than its category average. Over the past three years it has an average annual return of 14%. Assets: $8.8 billion Worst picks: Li & Fung(Hong Kong Exchange), 8% of the fund, down 32%; Ford ( F), 4% of the fund, down 37%; Delta Air Lines ( DAL), 4% of the fund, down 37%.