jantimont, what you perhaps don''t understand is that an investment manager would only undertake such an action if they were managing a fund that gave them 100% discretion to do that, often called an 'absolute return' fund. Some of these have really hit the fan when wrong decisions are made and the markets don't go the way expected. Most people avoid these due to risks / unknowns.
Most funds are legally required to be 'true to label' so that if Ophir invests in a fund that invests in mid/small caps then that is where it will invest. That is what he expects and that is what they are paid to do. It is up to the individual to choose whether or not to stay in it or not.
In the years leading up to 9/2007 I expect you would have been posting negative comments about fund managers that weren't riding the 'train' and had lower returns.
I think that covers both of your questions. It's very easy to be clever in hindsight and to point the finger at the wrong parties. I'm not saying the managed funds industry is reliable, only that people need to understand what they are / do. There are some 'experts' in their field, others are just vanilla alternatives to an index.
