Compassionate Curmudgeon

The Turnaround Fund

During the bubble years of the stock market in the late 90's, it was possible to make money simply by following the pack. Those days are gone.

One way to make money in the stock market today is to look where "everybody else" isn't looking, at companies that have been beaten down for one reason or another.

Enter Arne Alsin and his new Turnaround Fund.

I've just invested in the fund and here are my reasons. (Note that I'm not recommending what you do with your money; I don't know you, and in any case I'm not a financial advisor. I'm simply offering my rationale; do with it as you see fit.)

• Arne Alsin is a very smart guy with an excellent track record at finding unloved companies that are getting their acts together.
• It's a no-load fund.
• It's a new fund, which means it's still small. Small is good; a large fund by its very nature has limited options because it needs to buy or sell such large blocks of stock that the stock's price is affected and the fund's performance suffers.

Take a look at The Turnaround Fund's web site. Read the prospectus.

You can thank me later.

Update: See how my investment has done after four months.

Update II 2004/01/11: Removed reference to "very low expenses." As someone pointed out, the expense rate of 1.75% is not low.

Posted by jt at September 20, 2003 10:34 AM