SEC's civil suit against Goldman Sachs hits funds

25 April 2010 - InvestmentNews - Jessica Marquez

But not everyone with holdings in Goldman Sachs is selling. In fact, a number of managers are buying the stock, believing that it is undervalued.

Mark Mulholland, portfolio manager of the Matthew 25 Fund, which has 6.8% of its assets invested in the company, is holding on to the stock. Goldman Sachs is the fund's third-largest holding.

“I believe I will make money on it,” said Mr. Mulholland, who is also president of Matthew 25. “I believe they will work through this turmoil.”

Similarly, Harry Rady, portfolio manager and chief executive of Rady Asset Management LLC, has been buying the stock since it dropped more than $20 on April 16.

“Even if they have to pay $3 billion over this suit, it's a drop in the bucket,” he said. “Goldman is a world-class franchise, and this is a short-term transitory event.”

Many industry observers wonder whether Ken Heebner, portfolio manager of the CGM Focus Fund, is holding on to the stock .

Investors should carefully consider the investment objectives, risks, charges and expenses of the Contrarian Long/Short Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling 877.302.7239. The prospectus should be read carefully before investing. The Contrarian Long/Short Fund is distributed by Northern Lights Distributors, LLC member FINRA/SIPC.

	RAM L/S	S&P 500
One Year	4.05%	49.74%
Three Year	7.29%	-12.01%
Since Inception	7.65%	-12.77%
Q1 2010	0.09%	5.39%

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