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At the money management unit of Merrill Lynch, the two most prominent growth managers, James D. McCall and Paul G. Meeks, have recently been replaced.
He typically buys smaller stakes in companies than other Janus growth managers do.
To stay true to their investing discipline, growth managers such as MFS were forced to own overvalued stocks.
That is why, over time, even genuine value managers often become indistinguishable from growth managers -- a phenomenon known as style drift.
"Lots of value managers did as well as a lot of growth managers" in the second quarter, said Kunal Kapoor, associate director of fund analysis at Morningstar Inc.
The clients thought they were picking the best fund managers; the value investors were avoiding overpriced stocks; the growth managers were doing what they were paid to do.
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WHAT'S a growth manager to do when the market favors value stocks?
"If you are a disciplined growth manager, this is an opportunity you should seize," Mr. Sanders said.
"My fees are higher because I'm a growth manager," he said.
"I've been a growth manager all my career," Mr. Grano said in an interview.
Johno Harris is a business growth manager at Business Growth Service, supporting SMEs throughout the Thames Valley region.
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