wagnerjb:

Selected Value has been in existence 10 full years since inception in 1996.  It has underperformed its benchmark in 9 of those 10 years.  Since inception, its annual average return is a substantial 3.25% below the benchmark.  That's pretty significant.

VASVX may be slightly ahead of its benchmark so far in 2007 - but you gotta ask yourself what has changed from the past 10 years.

Here's what changed: Jim Barrow started managing the fund in 1999.

Over the past 5 years, VASVX has trailed the M* mid-cap value index by .75%, but it has beaten it over the past 3 years by .66%, and has beaten it by 4.49% over the past year.  As stated above, most of these returns can be explained by REIT exposure.

Note that over the 7 years ending January 1, 2007, Selected Value has returned 14.7% annualized, versus 14.3% for Small Value Index, which was the closest available Vanguard index fund 7 years ago, to my knowledge.

Petrocelli

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