As times turned tougher in the past five years, more and more stock mutual fund PMs have been stretching their wings outside their traditional scopes. That's the thrust of today's Morningstar Fund Spy column by editorial director and senior mutual fund analyst Gregg Wolper.

While M* agrees shareholders "have a right to ask questions" when they worry "that their managers are veering outside their areas of expertise or altering time-tested strategies," the pub ultimately comes down in favor of cutting good PMs some slack.

"In a complex and challenging investing environment, it makes sense to allow some leeway for experienced managers who have earned the benefit of the doubt," Wolper writes.

Wolper cites a number of envelope-pushing funds, including: AllianceBernstein International Focus 40 [profile], PMed by Laurent Saltiel; Artisan International [profile], PMed by Mark Yockey; Dodge & Cox International [profile]; Harbor International [profile]; and Longleaf Partners [profile].

The article mentions a number of types of PM flexibility, including short-selling, currency-hedging, and investing in specific stocks in a sector despite shying away from that sector. 

Edited by: Neil Anderson, Managing Editor


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