7 Mutual Funds That Make Huge Bets
Each of these funds has an outsized position in a single company.
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Concentrated portfolios come with unique sets of risks and benefits that are “two sides of the same coin,” says Lipper’s Jeff Tjornehoj. “When [the stock in which the fund is heavily invested] goes up in value, that has a significant effect of the value of the overall portfolio. And in contrast, when it stinks, you absolutely feel the pain.” Here are seven actively managed stock mutual funds that, according to Morningstar, have the highest percentage of their portfolio invested in a single company.
Fairholme Fund (FAIRX)