Re: Evaluating Managed Funds
Ed,
I didn't read the prospectus on Fairholme but my guess is that they try to beat the S&P buying undervalued mid to large caps. If you believe in these guys and this is the case, then I wouldn't worry too much about owning an S&P index, you are essentially trusting these guys to pick the best of the S&P. Kind of reiterating what you just said.
I like the thinking in your last allocation. I put 40% of my 401K contributions into VGTSX. However, I think they are allocated something like 60% into VEURX so by buying them both you may be getting too much of Europe and not enough of the rest of the world.
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