A FUND MANAGER SKATES ON THIN ICE ABOUT THE LAST THING THAT MUTUAL-FUND DIRECTORS ARE KNOWN FOR is dealing swiftly with laggard money managers. So the news that Vanguard Group's trustees were upset over the performance of portfolio manager Charles Freeman's $20.7 billion Vanguard Windsor Fund came as a shock--even in the face of the fund's 11.3% decline this year through Sept. 22. (Windsor is distinct from Windsor II, up 1.8%.) Come to learn, though, that 5 of Vanguard's 10 trustees have good reason to be concerned: Together, the group holds an unusually large stake in the venerable fund, more than 545,000 shares, according to Windsor's most recent proxy statement. Vanguard Senior Chairman John Bogle reported direct holdings worth $2.2 million at today's prices, while CEO John Brennan held even more: $2.8 million. And Princeton's Burton Malkiel, author of A Random Walk Down Wall Street, was down for $1.9 million. Altogether, the trustees' Windsor stake began 1998 with a value of $9.3 million. Now, it's closer to $8.2 million--a $1.1 million message to Freeman to get his act together. Vanguard, however, says it has no plans to dump Freeman anytime soon. By Robert Barker EDITED BY JOAN OLECK RELATED ITEMS CHART: Sinking Feeling Return to top of story

Updated Sept. 24, 1998 by bwwebmaster
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