Russel Kinnel Quotations

Most active managers are investing in what they think is a sure thing rather than their best speculative ideas. Nobody is out there trying to be a hero right now.

Expenses are definitely trending down. As a result of the whole scandal, boards are taking their responsibility more seriously, subjecting fees to more scrutiny.

Too many companies had perverse incentive systems that rewarded hot short-term performance and didn't provide any penalties for long-term problems.

You need to be diversified because you don't know which sector is going to get hit next. Just realize that nothing is ever that easy and that every recession is different.

This category has performed very well. It's one of the best and most innovative things the fund industry has come up with and partly that's because they do such a crummy job with the rest of their funds on taxes.

Economists are expecting things to gradually improve but realize that we are in a tougher environment now. I expect that 3 to 5 years from now we'll have some respectable gains of 5 percent to 10 percent annualized returns, but don't build a plan for anything better than that.

Anytime you can get a fund with a sound strategy, small assets and low costs, good things are likely to happen.

If the market goes down 10 percent tomorrow, you're not jumping out the window.

I don't see it having a big impact. The whole point of mutual funds is to avoid the Wall Street bias and most shops have their own in-house research. Big firms, like a Fidelity, have 200 professionals across the world so they never cared about the Street research to begin with.

These are funds you can buy and not worry much about. They're well run, and you can depend on that year in and year out.

And not just to look at those two options either, ... If they can't get good management at modest cost, then liquidation is a good option too.