Funds Exposed to AIG, Merrill, and Lehman

Those with heavy weightings include Clipper, Fidelity Growth & Income.

By SHARE

As of June 30, the following funds had the heaviest exposure to American International Group, Merrill Lynch, and Lehman Bros:

AIG

  • Fidelity Select Insurance: 16.5 percent of assets
  • Clipper: 8.6 percent
  • Grisanti Brown Value I: 5. 3 percent
  • Haverford Quality Growth Stock: 5.3 percent
  • Fidelity Growth & Income: 5.0 percent
  • Merrill Lynch

    • Natixis Harris Associates Large Cap Value A: 4.8 percent
    • Clipper Fund: 4.8 percent
    • Morgan Stanley Financial Services B: 4.7 percent
    • MassMutual Select Focused Value S: 4.6 percent
    • Foresight Value: 4.6 percent
    • Lehman

      • Fidelity Select Brokerage & Investment: 4.4 percent
      • 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
      • Notable is that the Clipper Fund—run by veteran fund managers Chris Davis and Ken Feinberg—has a combined 13.5 percent of its assets in AIG and Merrill. Not surprisingly, Davis Financial, another fund co-managed by Feinberg, also has significant exposure to AIG and Merrill. Clipper is down 34 percent so far this year, although it should also be noted that its 10-year returns of 6 percent per year, on average, are ahead of the S&P 500 by 2 percentage points.

        For a list of funds with heavy exposure to other troubled financial firms—Goldman Sachs and Morgan Stanley—see Morningstar's list.