Anyone who's tried day trading can tell you about the frayed nerves and upset stomach that come with following stocks by the hour. But try following their tiny movements day in and day out for a year, with $2 billion hanging on your decisions, and you'll have an idea of what it's like to manage a mutual fund. In mid-1998, reporter Molly Baker tagged along with Jerry Frey, manager of Delaware Investments' top-performing growth funds, and recorded his thoughts, actions, and conversations as he and his team tried to beat out 860 other funds for first place. What emerges is a portrait of a man with intestinal fortitude, a knack for numbers, and an uncanny understanding of market psychology. When a junior manager prepares to sell a rising stock at $30, Frey tells him to lower his target to $29 5/8; there may be a hundred other fund managers thinking, "I'll sell when it hits $30," but there may not be a hundred buyers willing to pay $30. "I've told you not to think in round numbers," Frey cautions.
As the year goes on, Frey's overall ranking rises and falls with the volatile tech sector, and with it his moods. But, ultimately, it's not competing funds that pose the greatest challenge to Frey and his team--it's a record bull market. Index funds were the biggest success story of the 1990s, riding the market's momentum instead of betting on individual stocks. Frey watches helplessly as the value of his handpicked portfolio shrinks, then grows, then shrinks again, while the overall market continues to climb. Personal investors wondering how the pros handle the market--both professionally and emotionally--should find High-Flying Adventures in the Stock Market an illuminating read, one that brings the mystery of big-money investing down to earth. --Demian McLean
