The most recent case of buy high and sell low was CGM Focus. Always volatile, this fast-trading fund grabbed investors' attention in 2007, when it generated an 80% return on the strength of its natural resources bets as well as well-placed short positions in mortgage-related companies such as Countrywide Financial. Predictably, a flood of investor assets whooshed in that year and in early 2008, just in time to see the fund lose half of its value. Through 2008, the fund's 10-year total return was still extremely impressive, at roughly 18% on an annualized basis. But due to poorly timed purchases and sales, the typical investor in the fund actually incurred a 20% loss over that time frame.

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