Attacks with stocks, especially in the falls of the market

Call the trust, or a will not to try the market in time, or even complacency. But whatever the reason, some mutual fund managers with the best performance in the last five or ten years say they are disinclined to sell their shares – even if the global market is refusing.

“I tried to try the markets,” said Jerome L. Dodson, fund manager of Parnassus Endeavor, which reported nearly 12 percent a year in the last decade, according to Morningstar. “I was hit every time.”

Mr Dodson said he did not know when the next market peak would arrive and therefore would not try to sell stock in advance. “He will surely come,” he said. “It may come soon, but I can not foresee it.”

This stick-with-stocks approach, which is embraced by many fund managers that thrived in the long bull market, can be a stabilizing force these days, compensating for some of the downward pressure that comes when stock prices fall .

This does not mean that all these stock fund managers fall into the market, however.

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Even though Mr. Dodson is not selling shares, the liquidity levels of his fund rose by just over 4 percent in September 2015 to 14 percent in August. This is mainly because the fund’s strong performance has attracted investors, and Mr. Dodson said he could not immediately put all their money for productive use.

“Because the market is close to a high level, I really can not find good stocks to invest,” he said. “I can not find companies, so I stay in cash.”

While Mr. Dodson has a considerable margin of maneuver, some funds are required by the prospectus to be almost completely invested in shares at all times. This is the case with the Brown Capital Management Small Company fund, which has returned more than 13% annually in the last decade. The fund seeks to limit its liquidity to 5 percent or less at all times.

Other funds retain their holdings because they know that their shareholders expect to maintain full exposure to, for example, small-capped or capital-invested capital. Many others maintain asset allocation, but buy and sell specific securities depending on market conditions, including fraud.

“We will not go to raise money,” said Chip Reed, managing the Eaton Vance Atlanta Capital SMID-Cap fund, which reported nearly 12 percent annually in the last decade, according to Morningstar.

Mr. Reed said he would not sell heavily even if he should have believed that a bear market was going on. Money can be done on bear markets, he said, “You do not understand it at the moment.”

Is there a good reason to fear a bear market? Some executives are still considering what they see as conflicting signals.

Andrew R. Adams, parent of the Mairs & Power Small Cap fund, founded in 2011 and delivering nearly 21% of annualized returns over the past five years, said he saw reasons to buy and avoid shares.

On the downside, Mr. Adams said, many stock index ratings have reached the top ten years. But on the positive side, dividend yield on the Standard & Poor’s 500 stock index is over 2 percent, while the average of ten years is 1.71.

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“Companies are increasing dividends faster than stocks are rising,” he said. Mr. Adams said he could still find attractive stock growth, sometimes in unexpected places. An example is the Oshkosh Corporation, which this year won a US Army contract for the upgrade of heavy tactical vehicles.

Thomas Ognar, fund manager of Wells Fargo Growth, said he did not want to fund fund investments in principle.

“We do not use money as a resource allocation tool,” said Ognar. Conversely, even though the market seemed overpriced, it would have sought actions that had relatively good prospects, which he called to have the ability to sustain growth twice the pace of gross domestic product growth for three to five years.

But Mr Ognar said he did not see “major warning signs” that the market was joking

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