Fund Managers Seduced by Facebook – WSJ.com

Fund Managers Seduced by Facebook – WSJ.com.

Some of the funds that bought shares wouldn’t normally be considered natural investors in a high-growth technology company like Facebook. For example, some of the demand for Facebook came from funds designed primarily to invest in dividend-paying companies or low-priced “value” stocks. Facebook is neither.

The disclosures show the wide latitude afforded to mutual-fund managers, and serve as a reminder for investors of the herd mentality that governs many asset managers’ buying decisions, say fund analysts and financial planners.

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