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NEW YORK (AP) - Two isn't always more than one. With mutual funds, whether two managers are better than one depends on the individual fund.
It's no surprise that many mutual funds run by a lone portfolio manager produce enviable returns. Legg Mason's Bill Miller has for years famously outmaneuvered a range of markets to turn in strong results. But funds that in some cases employ small armies of managers can also demonstrate impressive success. Some use a team approach, relying on several people to run the same fund, while others divvy up parts of a fund or fund family and give each manager an area of responsibility. American Funds, for example, uses multiple managers and has shown strong results.
While none of the approaches appears to be a clear winner, the notion of tapping the expertise of more than one person to steer a fund has its backers.
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