The strategy is good, it is just the timing that is off. That is the takeaway from Putnam Investments [profile] chief Bob Reynolds' comments to The Boston Globe columnist Steven Syre. Reynolds gave the interview after reports that the Boston mutual fund firm is making its fourth layoff since he joined in 2008 (MFWire coverage).

In the interview Reynolds said that 2011 "was a difficult year." He added that Putnam's three-year record is "fine".

"Our focus has always been on being able to execute over a longer period of time because that's what benefits shareholders."

The tough part of 2011 was outflows that reached $4 billion through November.

After starting the year putting money into Putnam funds, shareholders reversed course as performance dragged. The majority of Putnam funds, including flagship Putnam Voyager, lagged their peers.

Still, Reynolds has the backs of his PMs.

"We're right on target for earnings projections for companies, yet the stocks haven't reacted the way you would think," he told Syre. "It's just upside down." 

Edited by: HFD


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