Funds With Large Stakes in Lehman

The Lehman Bros. bankruptcy filing means the company's bond and stock holders are also in trouble. But what about mutual funds with large stakes in the company? According to Morningstar, which lists portfolio holdings as of June 30, funds with the largest exposure include:

• Fidelity Select Brokerage & Investment, 4.4 percent of assets
• Morgan Stanley Financial Services, 3.2 percent
• Legg Mason Partners Aggressive Growth A, 3.2 percent
• API Efficient Frontier Value, 2.5 percent
• Tanaka Growth, 2.4 percent

Of course, diversification is a huge advantage for mutual funds in situations like this, so a 3 or 4 percent blow doesn't necessarily spell doom, says Neil Hennessy, chairman and CIO of Hennessy Funds. "Three percent or 4 percent is no big deal—that loss can be made up if it's only one position," he says.

Shareholders of funds and exchange-traded funds loaded with financials—such as the Fidelity and Morgan Stanley funds above—may see a bigger impact, because Lehman and AIG are driving the sector lower.