The former manager of the Columbia Young Investor Fund wants to buy the fund from the Columbia family of mutual funds. The results of the fund since he left have not been good; they're worse than the average fund in its category. Perhaps, the fact that the fund has had 6 different managers in the two years since David Brady, the former manager, left may have something to do with its performance. Then, again, the problem may be at higher levels within the Columbia family.
Consider that Thomas Theobald, the independent chairman of the board that oversees the fund, won't allow Brady to make a presentation to the board. Theobald claims that Brady's performance when he was managing the fund was sub-par. Yet Morningstar rated the fund better than 80% of its peers as did Columbia in its marketing material when Brady was manager.
Perhaps Theobald is overworked for the $172,500 he took home from Columbia last year for sitting on the boards of 118 Columbia funds. Let's see now. 118 boards, 250 working days in a year. So, assuming he works 250 days at Columbia, he spends 2.1 days for each fund, earning $690 per day. Anybody want to bet he does not work anywhere near 250 days a year?
No comments:
Post a Comment