WEALTH ADVISER: Money Managers Still Seek Gains From Stocks
by IAN SALISBURY
NEW YORK (Dow Jones)--The stock market's rough week has wiped out most of the gains the Standard & Poor's 500 posted this year, but money managers are still hoping to register attractive returns by betting on stocks.
Tax-loss overhangs allow investors to benefit from 2008 downturn
by Jeff Benjamin
Embedded capital losses, which represent a combination of realized and unrealized losses, offer a rare opportunity for mutual fund investors in taxable accounts. According to Morningstar Inc., there are more 100 equity funds with embedded losses, also known as tax-loss overhangs, of more than 100%.
Holders of separately managed accounts are supposed to be the brokerage business's VIPs, but humble mutual-fund holders may find themselves better-served in the long run. Amid the rocky fourth quarter, investors that work with fee-based financial advisers pulled money from both SMAs and mutual funds, but brokerage firms' high-rolling SMA clients appear to have been far more rash.