Four years ago, the top-performing Hotchkis & Wiley Large Cap Value fund shut its doors to new investors. The mutual fund had beaten at least 97% of its peers for three consecutive years through 2004.
Then last year, the fund collapsed, falling behind 95% of its peers. Its assets fell to a fourth of the fund’s peak. Now, it’s once again welcoming new investors.
The fund is among nearly 100 hitherto closed funds that have lowered the velvet rope since the start of last year and are now reopening to new investors. While historical data is spotty, analysts at investment researcher Morningstar Inc. estimate that this is the highest number of fund reopenings ever. The question for investors: Should they bite? Link
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