Seattle Times – Vincent Gallagher and James Kloppenburg put together the second-best performance among U.S. growth mutual funds during the past decade by buying shares of companies in financial orregulatory turmoil.
Now, the managers of the Needham Growth Fund are investing in American International Group (AIG), Motorola, Tyco International and Merck, whose stocks got battered.
“When the market doesn’t want to buy them, that’s usually a good time to jump in,” Gallagher, 62, said from his office at Needham & Co. in New York.
The contrarian strategy led the $226 million Needham Growth Fund to average returns of 19 percent during the past 10 years.
