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Fund Spy

Two Top Managers Put on the Gloves

These fund managers are demanding better behavior from the companies they own.

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As an investor, you entrust your money to others--such as corporate managements and boards of directors--and expect them be good stewards of your capital. You expect them to run the business in a thoughtful and responsible manner, ultimately resulting in a profitable experience for you and other shareholders.

Sometimes that delegation is a beautiful thing. After all, those closest to the operations of a business can be keen practitioners with the interests of shareholders (a category that often includes themselves) at heart. As  Wintergreen Fund (WGRNX) manager David Winters said at the annual Morningstar Investment Conference last week, "People matter."

But what happens when they surprise you, and not in a good way? Or you find yourself disagreeing more and more with their tactics? Most mutual fund managers and other investors simply sell the stocks or bonds and walk away. It's a viable approach and often the easiest and most painless way to go.

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