Fund Manager's Letter Definition

What is a Fund Manager's Letter?

The fund manager's letter is a letter generally sent out annually to shareholders of a mutual fund.  This letter provides details about the stocks currently held in the fund and how the current market activity has affected the performance of the fund.  This letter is meant to provide more details that shareholders can use to investigate the judgment of their fund manager.  Lastly, the fund manager will detail in the letter the future strategy for the fund and how they expect to improve performance over the coming year.  Recently a hedge fund manager by the name of Andrew Lahde made headlines across the blogosphere by writing a goodbye letter to his shareholders after his fund returned nearly 1000% in one year.  This letter was filled with expletives about the trading business and how he hates it.  Check it out here.