It only seems as if fund managers don't fall in love anymore. The average domestic-stock fund has a turnover rate of 113 percent. Yet some managers have been going steady with the same stock for years and years. For the most part, this is a good sign.
Managers can deepen their contacts with a company and establish a strong relationship.
Hence, their understanding of the company will surpass that of most investors and analysts. And if you want a fund that outperforms, you want a manager who digs deeper than the rest and invests enough in the position to make it count. The downside is that sometimes healthy contrarianism can become stubbornness and a lack of sell discipline. I looked at a few cases below. These managers can have widely different styles, but they are nearly all indifferent to market trends and therefore tend to produce extremes in yearly performance.