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Oceanstone fund's James J. Wang?

May 29, 2012 by Americo from Alexandria, VA in  |  Flag
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Americo - Oceanstone has received some publicity recently due to its exceptional performance. However, it is a tiny fund without much management depth. This exposes investors to operational risk beyond traditional investment risk. Of course it's possible that James J. Wang it the next Warren Buffett. But more likely, the fund has experienced a random period of out-performance and will revert to the mean. With thousands of mutual funds in existence, there are always a handful with exceptional recent performance. They are easy to pick out after they have done well, but as the disclaimer goes "past performance is not indicative of future returns." I recommend that you stick to institutional-quality, highly-diversified funds with low expense ratios, rather than chasing the latest hot manager.

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