Royce Posts Semi-Annual Report, Letter to Shareholders

The Royce Low-Priced Stock Fund posted a loss of 4.5 percent for the first half of 2010 vs. a decline of 1.9 percent for its small-cap benchmark, the Russell 2000. 

To read the manager Whitney George's discussion of performance over the period, click here.

To read management's insightful letter to shareholders -- which compares beachgoers' reactions to "Jaws" with investors' reactions to the stock market -- click here. 

The Royce Low-Priced Stock Fund is a component of the Bradway Strategic Portfolio, which consists primarily of investments with top money managers. Not all clients have investments in the Strategic Portfolio.

Oakmark Manager Kicks Off "All-Star Investors" Series

We're not fans of CNBC. The network contributes to the noise that is a distraction to patient, long-term investors.

Nonetheless, the network this week kicked off an "All-Star Investors" series of interviews with top money managers. David Herro, manager of several Oakmark funds, was featured in the first installment. Herro is manager of the Oakmark Global Select fund, a component of the Bradway Strategic Portfolio. Although Herro was interviewed as manager of the Oakmark International fund, which we do not use, much of what he said about his investing style and approach applies to Global Select, as well.

You can watch the video here.

Learn About Fairholme's Latest Stock Picks

Bruce Berkowitz, manager of The Fairholme Fund, gave a detailed interview this month to Consuelo Mack of Wealthtrack. The interview focused on the fund's concentration in big banks and other financial companies, as well as the risk associated with these bets. But it also delved into the fund's philosophy of investing in just a few stocks and how the fund aims to reduce risk.

To watch the video, click here.
To read the full transcript of the interview, click here.

The Fairholme Fund is a component of the Bradway Strategic Portfolio, which consists primarily of investments with top money managers. Not all clients have investments in the Strategic Portfolio.

First Eagle: There's No Safety in Bonds

Investors should buy stocks -- not bonds -- in order to preserve capital in today's environment, Matthew McLennan, portfolio manager for the First Eagle Global fund, told InvestmentNews today.

While government bonds, and particularly Treasury bills, have the perception of safety, McClennan said that's not necessarily the case. Given their negative real interest rates, bonds are not risk free, he said.

"If your goal is to preserve capital in real terms, you may have to take risk" by investing in stocks, he said. First Eagle funds are currently invested 75 to 80 percent in stocks, with the balance split between cash and gold.

To read the full story, click here. First Eagle's assessment of bonds mirrors Bradway's view. Earlier this year we dramatically reduced our bond exposure.

First Eagle Global is a component of the Bradway Strategic Portfolio, which consists primarily of investments with top money managers. Not all clients have investments in the Strategic Portfolio.

Conference Room Improvements

Our new conference room is taking shape. The spacious room, located across the hall from our offices in Suite 1, now features a 65-inch flat screen monitor and a white board that will make it easier to view presentations.

The room is available for use by clients and friends of Bradway Financial.

Physicans: Take Steps to Protect Assets

We recently ran across an article from Physicians Practice that underscores the importance of taking steps to protect your personal assets from medical malpractice lawsuits. Although the article was written four years ago, it points out risks that remain valid today.

To read the story, "Your Money: You Can Go Broke in a Malpractice Suit," click here.

Fairholme Expects Financial Companies to Lead Economic Recovery

The Fairholme Fund has stocked up on financial stocks because "they are going to play a key role in rebuilding the balance sheets of individuals, corporations and municipalities," manager Bruce Berkowitz told Kiplinger's last week.

Without prosperous financial services companies, the economy cannot move forward, he noted. And since banks have tightened their lending standards in the past two years, they are writing loans that are more profitable and less risky than the ones they were writing before the financial crisis, he said.

To read the full story, click here.