Growing Rich - Arabictrader.com

KIRK KAZANJIAN
Growth in the Bramwell Growth Fund’s prospectus, not only in the
first year, but also thereafter. “As a result, it has become substantially
easier for fund managers in general to go out on their own and refer
to their past records,” she points out. “People come up to me at conferences
and thank me for facilitating the process of starting their
own businesses. It’s very gratifying.”
More fund companies have since begun using management teams,
instead of individuals, to muddy who is really in charge of making
the day-to-day investment decisions for the portfolio. This strategy
makes it harder for managers to leave and claim the record at their
former fund was solely their own. “I think that’s excessively paranoid,”
Bramwell offers. “As far as I’m concerned, the more competition the
better. That’s what keeps the market liquid.”
BEATING THE INDEX
The pressure to outperform the S&P 500 is always on every fund
manager’s mind. It’s a bogey that has gotten more difficult to beat.
Studies show some 80 percent of all active portfolio managers now
turn in results below that of the computer-run S&P 500 index funds.
“It’s not the same old index that it used to be,” Bramwell maintains.
“It used to be easier to beat, because it didn’t change that much. Today
it contains growth stocks such as Microsoft and Dell. If those companies
keep growing by 25 percent or so a year, they will continue to
drive up the index. Although the index is supposed to be representative
of the whole market, it is increasingly dominated by the top 25
stocks. I believe it’s also important for investors to compare the performance
of their managers to a peer group. In my case, that could
be the Lipper Growth Fund Index. Going forward, as valuations rise
and the thrust of new investors going into index funds as their initial
investment levels off, I believe the market will broaden and active
managers will be better able to beat the S&P in the future.”
A GROWING BUSINESS OF HER OWN
Bramwell Capital Management has grown into a firm of seven, including
three analysts besides Bramwell. Assets total more than $500
million, $150 million of which is in the Bramwell Growth Fund. The
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