How the Kiplinger 25 Are Handling the Market Turbulence

Some of our favorites have taken a beating over the past couple of weeks. Others are little affected.

These are testing times for fund managers. From a market high on July 19, Standard & Poor's 500-stock index had slumped 7.3% (including dividends) by the close on August 3. Volatility spiked. The small-company Russell 2000 index surrendered nearly 11% during the same time span. How fared the stock funds in the Kiplinger 25?

The results were mixed. It's little surprise that Merger (MERFX), which doesn't correlate closely to stock market performance, held its value best, shedding less than 2% during the turbulent 15-day timeframe. Next best was Ken Heebner's CGM Focus (CGMFX), which fell less than 3% and was up a staggering 29% year to date. Heebner dumped his investment-bank stocks before the group started to roll over in late spring and, if his March 31 portfolio is anything to go by, is benefiting from a large position in foreign and energy and industrial-material stocks.

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Contributing Writer, Kiplinger's Personal Finance