Get Your 2023 Mutual Fund Report Cards on Every Fund in Every Category!

A Classic Example of Front-Running Media Hype


While this piece is dated, we post it to the blog from time to time, lest we all forget!

 In 2002, we authored a piece entitled A Classic Example of Front-Running Media Hype.  We wrote the piece because we were outraged by all of the media hype surrounding the American Heritage Fund (AHERX) and its manager Heiko Thieme.  Here is why.

In 1989, Mr. Thieme, known as the Rocket Man, (no, not that rocket man!) was named “Best Investment Advisor” at the International Investment Congress.  I guess his past record at American Heritage was an inconvenient truth:

1984 - lost 25%
1987 - lost 19%
1985 - lost 14%
1988 - made 2%
1986 - lost 26%
1989 - lost 3%

In the first quarter of 2002, the American Heritage Fund was #1 in the world, putting Thieme back on all the talk shows, and, true to form, in May of that year, Business Week said Heiko had “a sixth sense for stocks.” In spite of an awesome record of success from 1991 through 1993,...

Continue Reading...

The Forbes Honor Roll - a history of failure!

Forbes Magazine’s annual honor roll of mutual funds is met with great anticipation by much of the investing public.  After all, the fund research from such a prestigious publication should provide investors with a great opportunity to assemble a most prosperous portfolio; but, is that how it turned out?  Did Forbes Magazine succeed in providing investors with an outstanding tool with which to choose mutual funds?  Answer in a word:  NO!

From 1990, Forbes placed 292 funds on its most prestigious annual Honor Roll, with annual qualified listings of 10 to 20 funds.  Over the years, the honor roll actually consisted of only 104 funds, with many of the funds making repeat appearances.   Surprisingly, it would be difficult to build a properly allocated portfolio out of the honor roll funds, as they represent only a few of the different investment categories.

 The simple mathematical odds of a fund achieving a certain performance quartile...

Continue Reading...

50% Complete

Two Step

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.