Mutual Funds

Mutual Fund Turnaround Investing Opportunities: This Year's Crop


Want to know what George Putnam is recommending to readers of his Turnaround Letter? The articles previewed below offer you a sneak peak of the quality content and sound investment guidance you can trust. To view his most recent recommendations click here.



Mutual Fund Turnaround Investing: This Year's Crop

In addition to advising against market timing, we always strongly recommend diversification as the best way for investors to reduce risk.  For that reason, we believe that mutual funds are very appropriate for many investors because they provide ready-made diversification.  However, given our contrarian bent, we don’t like just any mutual funds; rather we like funds that either focus on turnaround investing as part of their strategy (see the article in the October 2012 issue) or are themselves something of a turnaround.  This latter category usually means funds with good long-term track records that have stumbled for a year or two.

Last year around this time (see the March 2012 issue), we looked at nine funds that fit in this rebound category.  They had underperformed significantly in 2011 despite strong long-term records.  As a group, they definitely lived up to our expectation that they would turn around: the average return (net of fees) for the nine funds for 2012 was just shy of 20%, almost four percentage points better than the S&P 500.

The stock market was less volatile in 2012 than it was in 2011, but nonetheless a number of funds with good long-term records stumbled last year.  We’ve highlighted several of them below that we expect to revert to their winning ways before long.  Subscribe now to find out which seven mutual funds George Putnam recommends for prudent contrarian and value investing.



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Return of Volatility? No, Return of "Normal"

Sizeable market moves can increase the temptation to sell on downdrafts and buy on upswings; however, we strongly advise against attempting to do that. The chances of getting out at the right time and then back in again before the market rebounds are extremely slim. Read More.

Harnessing Activists to Help Find Turnaround Stocks

Activist investors often produce attractive returns for their clients; and you can still use their influence to help your position as a turnaround investor in two ways: Buy a position in a stock with the expectation that an activist will soon follow or buy after an activist takes a stake.


Value Investing


While one of the many dozens of activist funds might find their way to selecting your particular stock, this approach is likely to be frustrating and unrewarding. A better approach is to buy after the activist makes their move. Once an activist takes a stake in a company, how do you evaluate whether it is worthwhile to follow on? Admittedly, this is a bit of an art... Learn how you can harness the power of activist investors to find market-beating turnaround stocks.

Turnaround Letter Stock Pick Named Top Performer of 2017


stock market advicex


What Last Year's Top Stock Pickers Are Buying in 2018


This Forbes write-up follows up on the recent Top Stock Tips report--naming The Turnaround Letter's Crocs recommendation the top performer of 2017: With 90% gains, CROX beat out 100 other investment ideas included in the report; and the stock continues to have value investing appeal, according to Putnam.


George notes, "We see additional upside for the stock in 2018 as management's efforts continue to bear fruit, though the gains will likely be more muted than we saw in 2017."