Finance Professor Studies "5-Star" Funds

John F. Wasik of Bloomberg News interviews Matthew Morey, a finance professor at Pace University in New York, and author of the best seller "Blink: The Power of Thinking Without Thinking." In this article published at the Seattle Times web site, Morey, who also penned a research paper entitled "Kiss of Death: A 5-Star Morningstar Rating turns his attention to the mutual fund rating service of the well-known investment research firm saying, "Three years after a fund received its initial five-star rating, fund performance severely falls off." The professor advises focusing more on mutual fund sales costs, management expense ratios, and trading turnover.

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(May '04-Jun '05)