A Different View of Value

Putnam Tax-Smart Equity Fund's Richard Cervone discusses why his outfit doesn't always see stocks with high p-e's as unattractive

The managers of Putnam Tax-Smart Equity Fund (PATSX ) are careful not to pull the trigger on too many portfolio trades. Instead, they seek to avoid generating significant short-term capital gains, which could force shareholders to pay substantial taxes, creating a wide gap between the fund's pretax and aftertax returns.

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