5 Formerly Top-Performing Mutual Funds to Sell in This Market

The "new normal" will not be kind to these funds and others like them. Look at your funds for these danger signals.

Bill Miller was the closest thing the mutual fund world had to a rock star since Peter Lynch retired as manager of Fidelity Magellan (symbol FMAGX) in 1990. But when Miller stepped down as manager of Legg Mason Value Trust (LMVTX) in November, he left behind a record decimated by six years of miserable performance.

Legg Mason Value had famously beaten Standard & Poor’s 500-stock index 15 years in a row, a feat that has never been matched. But Miller’s hot streak turned ice-cold in 2006, and it remained that way to the very end of his tenure on Value.

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Steven Goldberg
Contributing Columnist, Kiplinger.com
Steve has been writing for Kiplinger's for more than 25 years. As an associate editor and then senior associate editor, he covered mutual funds for Kiplinger's Personal Finance magazine from 1994-2006. He also authored a book, But Which Mutual Funds? In 2006 he joined with Jerry Tweddell, one of his best sources on investing, to form Tweddell Goldberg Investment Management to manage money for individual investors. Steve continues to write a regular column for Kiplinger.com and enjoys hearing investing questions from readers. You can contact Steve at 301.650.6567 or sgoldberg@kiplinger.com.