We're all a bit protective when it comes to our money. And fittingly so, since most of us -- sorry trust fund doggies -- have worked hard to earn it and have disciplined ourselves to save it. This gives us the right to be cautious of who we trust to handle our wealth.
Although a majority of Wall Street workers thrive more on your commission than your money's performance, I remain convinced that there are a handful of money managers who make your best interest their top priority.
Oh yeah? Find me one!
The particular manager I have in mind is Bill Nygren, who oversees a handful of mutual funds, including Oakmark I (OAKMX), Oakmark Select I (OAKLX), and Oakmark Global Select I (OAKWX). The level of honesty displayed by Nygren in a recent letter to shareholders of OAKLX is utterly admirable.
He frankly admits that the fund has performed "meaningfully worse" than the market, describing how quickly its top holding -- Washington Mutual (NYSE:WM) -- has been losing value. But he conveys optimism in the bank's future, citing its lending practices as less risky than that of competitors.
He states that a few of its other main holdings, namely McDonald's (NYSE:MCD), Yum! Brands (NYSE:YUM), Viacom (NYSE:VIA), and Limited Brands (NYSE:LTD), have been also declining, though he assures that it is for reasons unrelated to business fundamentals and remains upbeat about their future performance.
But honesty about his fund's performance is not the only aspect of his letter that shows him to be a quality money manager.
What else impresses you?
Oakmark's philosophy is that "in the long run, business performance and stock price performance converge." In other words, short-term losses are insignificant from a long-term investor's standpoint.
It may be "frustrating ... at a time when our stock prices are moving in the wrong direction," but Nygren assures shareholders that he "won't ... [run] out of patience."
Oakmark Select has lagged the market this year, but, as the Fool's Champion Funds advisor Shannon Zimmerman wrote recently, Nygren's "price-conscious strategy ... can take time to pay off."
If history is any indication, Shannon's analysis will prove to be correct. Even with its poor recent results, Oakmark Select is still outperforming the market by an annualized 7.5% over the past 10 years (a much more meaningful period than the past several months), according to Morningstar data.
And that's not all ...
Not only does Nygren adhere to the long-term buy-and-hold strategy that we Fools advocate, he also reveals that he invests his own money solely in Oakmark funds. He confesses that losing money is just as frustrating for him, but promises not to abandon his investing philosophy and criteria despite the market's current disdain for a large-cap growth strategy.
Both are important, but this last fact is something not to forget. When searching for the best funds for your bucks, it's vital to find managers who are not easily swayed by the market's short-term ups and downs and instead remain consistent to the game plan they believe is best.
After all, the only accurate way to guess managers' future performance in comparison to past performance is if their philosophies have remained consistent and will continue to do so in the future. And that is why we can be sure that Nygren's funds will, in the long run, bring the gold.
For even more managers you can be sure to trust, check out our Champion Funds newsletter service completely free. There's no obligation to join, so click here to take a peek at some of the research we've done for you.
Fool analyst Adam J. Wiederman knows that slow and steady wins the race, but can't help his need for speed. He has no position in any securities mentioned above. Oakmark I is a Champion Funds recommendation. Washington Mutual and Limited Brands are Income Investor recommendations. The Fool's disclosure policy is hare-y.
