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Oh Cisco! Funds That Sold before Things Got Worse

American Century, American Funds, and Pimco Innovation have sold some.

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Some big stock mutual funds trimmed their exposure to networking titan Cisco Systems (CSCO) before the stock, which had fallen for much of 2000, took an even steeper dive at the start of this year.

Cisco, which still is one of the most widely held stocks among mutual funds, fell nearly 29% last year as technology stocks took it on the chin. This year the stock has fallen nearly 48%. The company, which at one time seemed to do no wrong, first missed earnings estimates in February and lowered its growth forecasts. Then Cisco announced its first-ever round of layoffs this month and last week reported signs of slowness in its international business. 

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Dan Culloton has a position in the following securities mentioned above: ANWPX. Find out about Morningstar’s editorial policies.