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Three Top Managers Having Lousy Years

A terrible 2006 rank doesn't mean a manager has lost his touch.

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About a month ago, we explored the case of a very prominent fund manager whose fund's lackluster 2006 return relegates it to the very bottom of its category rankings. But, as it turns out, Bill Miller of  Legg Mason Value (LMVTX) is not the only well-respected domestic-stock manager whose fund currently sits in (or near) the 99th percentile of its category for the year to date.

Investors know they should not attach much significance to one-year results, but when a fund you own (or have considered owning) has sunk to the bottom of the year's performance chart, it's understandable that you'd want to know what's up. In short, what accounts for the lousy showing, and, more importantly, is the fund still worth owning?

We addressed those issues for Legg Mason Value on Halloween and concluded that Bill Miller certainly hasn't lost his touch, this year's results notwithstanding. Here, we'll take a look at three other domestic-stock funds with highly respected managers who currently find themselves in the same situation. The good news for shareholders of these funds, as with owners of Legg Mason Value, is that there is no reason to panic about any of them.

Gregg Wolper does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.