1
 Pension funds, insurers and other behemoths of the investing world said 
2
attribution

2
they began scooping up stocks during Friday's market rout.
5001
span

3
 And they plan to buy more today.
5001
elaboration-additional

4
 Rightly or wrongly, many giant institutional investors appear to be fighting the latest war 
5004
span

5
by applying the lesson 
5005
span

6
they learned in the October 1987 crash:
5
elaboration-object-attribute-e

7
 Buying at the bottom pays off.
5005
elaboration-general-specific-e

8
 To be sure, 
5009
comment

9
big investors might put away their checkbooks in a hurry 
5009
span

10
if stocks open sharply lower today.
9
condition

11
 They could still panic 
5011
List

12
and bail out of the market.
5011
List

13
 But their 1987 performance indicates
5014
attribution

14
 that they won't abandon stocks 
5014
span

15
unless conditions get far worse.
14
condition

16
 Last time, we got rewarded for going out and buying stocks 
5016
span

17
when the panic was the worst, 
16
circumstance

18
said John W. Rogers, president of Chicago-based Ariel Capital Management Inc., 
5018
span

19
which manages $1.1 billion of stocks.
18
elaboration-additional-e

20
 Mr. Rogers spent half his cash on hand Friday for our favorite stocks
5020
span

21
 that have fallen apart.
20
elaboration-object-attribute-e

22
 He expects to invest the rest
5022
span

23
 if the market weakens further.
22
condition

24
 Denver-based portfolio manager James Craig wasn't daunted 
5024
span

25
when Friday's rout shaved $40 million from the value of the $752 million Janus Fund
5025
span

26
 he oversees.
25
elaboration-object-attribute-e

27
 I waited 
5027
span

28
to make sure 
29
attribution

29
all the program trades had kicked through, 
5028
span

30
he said.
5027
attribution

31
 Then he jumped into the market: 
5031
span

32
I spent $30 million in the last half-hour.
31
explanation-argumentative

33
 Other money managers also opened their wallets.
5032
span

34
 I was buying at the close 
5033
span

35
(Friday) 
34
elaboration-general-specific-e

36
and I'll be buying again 
5035
span

37
because I know we're getting good value, 
36
reason

38
said Frederick A. Moran, president of Moran Asset Management Inc., Greenwich, Conn.
5034
attribution

39
 There is no justification on the fundamental level for this crash.
5036
elaboration-additional

40
 Unlike mutual funds, 
5039
span

41
which can be forced to sell stockholdings
5040
span

42
 when investors rush to withdraw money,
41
circumstance

43
 big investors such as pension funds and insurance companies can decide to ride out market storms
5042
span

44
 without jettisoning stock.
43
manner

45
 Most often, they do just that,
5044
span

46
 because stocks have proved to be the best-performing long-term investment,
5045
Cause-Result

47
 attracting about $1 trillion from pension funds alone.
5045
Cause-Result

48
 If you bought after the crash, 
49
condition

49
you did very very well off the bottom, 
5047
span

50
said Stephen B. Timbers, chief investment officer of Chicago-based Kemper Financial Services Inc. 
5047
attribution

51
The $56 billion California Public Employees Retirement System, for one, added $1 billion to its stock portfolio two years ago.
5048
elaboration-additional

52
 The last crash taught institutional investors 
5052
attribution

53
that they have to be long-term holders, 
5052
List

54
and that they can't react to short-term events, good or bad,
5052
List

55
 said Stephen L. Nesbitt, senior vice president for the pension consultants Wilshire Associates in Santa Monica, Calif.
5051
attribution

56
 Those 
5055
span

57
that pulled out 
5056
span

58
(of stocks) 
57
elaboration-general-specific-e

59
regretted it,
5057
Same-Unit

60
 he said, 
5057
attribution

61
so I doubt 
5061
attribution

62
you'll see any significant changes in institutional portfolios 
5061
span

63
as a result of Friday's decline.
62
result

64
 Stocks,
5064
Same-Unit

65
 as measured by the Standard & Poor's 500-stock index, 
66
explanation-argumentative-e

66
have been stellar performers this year, 
5128
span

67
rising 27.97% before Friday's plunge, 
5066
span

68
excluding dividends.
67
elaboration-part-whole

69
 Even Friday's slump leaves investors ahead more than 20%, well above the annual average for stocks over several decades.
5065
elaboration-additional

70
 You could go down 400 points 
71
concession

71
and still have a good year in the market, 
5069
span

72
said James D. Awad, president of New York-based BMI Capital Corp.
5069
attribution

73
 Mr. Awad, however, worries 
74
attribution

74
that the market could go down 800 or 900 points in the next few days. 
5072
span

75
It can happen 
5074
Sequence

76
before you can turn around.
5074
Sequence

77
 He said 
5077
attribution

78
he discerns many parallels with 1987, 
5077
span

79
including the emphasis on takeover stocks and the re-emergence of computerized program trading.
78
elaboration-set-member-e

80
 The only thing you don't have, 
5129
span

81
he said,
80
attribution-e

82
 is the `portfolio insurance' phenomenon 
5080
Same-Unit

83
overlaid on the rest.
5080
elaboration-object-attribute-e

84
 Most institutional investors have abandoned the portfolio insurance hedging technique, 
5082
span

85
which is widely thought to have worsened the 1987 crash.
84
elaboration-additional-e

86
 Not really insurance, this tactic was designed 
5084
span

87
to soften the blow of declining stock prices
5085
List

88
 and generate an offsetting profit 
5085
List

89
by selling waves of S&P futures contracts.
5085
means

90
 In its severest test, the $60 billion of portfolio insurance in effect in the 1987 crash didn't work, 
5088
span

91
as stock buyers disappeared
5089
List

92
 and stock and futures prices became disconnected.
5089
List

93
 Even without portfolio insurance,
94
concession

94
 market conditions were grim Friday, 
5091
span

95
money managers said.
5091
attribution

96
 Neil Weisman,
5094
span

97
 whose New York-based Chilmark Capital Partners had converted 85% of its $220 million investment pool to cash in recent months,
96
elaboration-additional-e

98
 said 
5095
Same-Unit

99
he was besieged by Wall Street firms Friday 
5097
span

100
asking him to take stock off their hands.
99
elaboration-object-attribute-e

101
 We got calls from big block houses 
5099
span

102
asking us 
103
attribution

103
if we want to make bids on anything,
5100
span

104
 said Mr. Weisman, 
5102
span

105
who, happy with his returns on investments 
5103
span

106
chalked up earlier,
105
elaboration-object-attribute-e

107
 declined the offers.
5104
Same-Unit

108
 Mr. Weisman predicts 
5108
attribution

109
stocks will appear to stabilize in the next few days 
5107
Sequence

110
before declining again, 
5107
Sequence

111
trapping more investors.
5107
cause

112
 I think 
113
attribution

113
it will be a rigor mortis rally, 
5110
span

114
he said.
5110
attribution

115
 Meanwhile, Friday brought a reprieve for money managers 
5113
span

116
whose investment styles had put them at odds with the market rally.
115
elaboration-object-attribute-e

117
 Especially gleeful were the short sellers,
5115
span

118
 who have been pounded by this year's market climb.
117
elaboration-additional-e

119
 The shorts sell borrowed shares,
5117
span

120
 hoping to profit
5118
span

121
 by replacing them later at a lower price.
120
means

122
 The nation's largest short-selling operation is Feshbach Brothers, Palo Alto, Calif.,
5120
span

123
 which said last May 
124
attribution

124
that its short positions had shown losses of 10% for the year up to that point.
5121
span

125
 All that now has changed.
5123
span

126
 We're ahead for the year 
5124
span

127
because of Friday, 
126
result

128
said the firm's Kurt Feshbach.
5124
attribution

129
 We're not making a killing, 
5127
Contrast

130
but we had a good day.
5127
Contrast

5001
span
5002
span

5002
span
5003
span

5003
span
5007
span

5004
span
5002
explanation-argumentative

5005
span
5006
span

5006
span
4
means

5007
span
5038
span

5008
span
5010
span

5009
span
5008
span

5010
span
5003
elaboration-additional

5011
multinuc
5015
concession

5012
span
5008
hypothetical

5013
span
5015
span

5014
span
5013
span

5015
span
5012
span

5016
span
5017
span

5017
span
5019
span

5018
span
5016
attribution

5019
span
5023
List

5020
span
5021
span

5021
span
5017
elaboration-additional

5022
span
5020
elaboration-additional

5023
multinuc
5013
example

5024
span
5026
span

5025
span
24
circumstance

5026
span
5023
List

5027
span
5029
span

5028
span
27
purpose

5029
span
5030
Sequence

5030
multinuc
5024
explanation-argumentative

5031
span
5030
Sequence

5032
span
5023
List

5033
span
5034
List

5034
multinuc
5036
span

5035
span
5034
List

5036
span
5037
span

5037
span
33
explanation-argumentative

5038
span
5062
Topic-Drift

5039
span
5041
Same-Unit

5040
span
40
elaboration-additional-e

5041
multinuc
5043
span

5042
span
5041
Same-Unit

5043
span
5046
span

5044
span
5041
elaboration-additional

5045
multinuc
45
reason

5046
span
5050
span

5047
span
5048
span

5048
span
5049
span

5049
span
5043
elaboration-additional

5050
span
5007
elaboration-additional

5051
span
5053
span

5052
multinuc
5051
span

5053
span
5054
span

5054
span
5046
explanation-argumentative

5055
span
5057
Same-Unit

5056
span
56
elaboration-object-attribute-e

5057
multinuc
5058
span

5058
span
5059
span

5059
span
5053
elaboration-additional

5060
span
5058
cause

5061
span
5060
span

5062
multinuc



5063
span



5064
multinuc
5065
span

5065
span
5067
span

5066
span
5064
elaboration-additional

5067
span
5068
span

5068
span
5062
Topic-Drift

5069
span
5070
span

5070
span
5073
antithesis

5071
span
5075
span

5072
span
5073
span

5073
span
5071
span

5074
multinuc
5072
hypothetical

5075
span
5067
explanation-argumentative

5076
span
5081
concession

5077
span
5076
span

5078
span
5071
elaboration-additional

5079
span



5080
multinuc
5081
span

5081
span
5078
span

5082
span
5083
span

5083
span
5090
Topic-Drift

5084
span
5087
span

5085
multinuc
5086
span

5086
span
86
purpose

5087
span
5082
elaboration-general-specific

5088
span
5084
elaboration-additional

5089
multinuc
90
circumstance

5090
multinuc
5062
Topic-Drift

5091
span
5092
span

5092
span
5093
span

5093
span
5112
span

5094
span
5095
Same-Unit

5095
multinuc
5097
attribution

5096
span
5098
span

5097
span
5096
span

5098
span
5092
elaboration-additional

5099
span
5101
span

5100
span
101
elaboration-object-attribute-e

5101
span
5105
span

5102
span
5099
attribution

5103
span
5104
Same-Unit

5104
multinuc
104
elaboration-additional-e

5105
span
5096
explanation-argumentative

5106
span
5109
span

5107
multinuc
5108
span

5108
span
5106
span

5109
span
5101
elaboration-additional

5110
span
5111
span

5111
span
5106
elaboration-additional

5112
span
5090
Topic-Drift

5113
span
5114
span

5114
span
5093
elaboration-additional

5115
span
5116
span

5116
span
5119
span

5117
span
5115
definition

5118
span
119
reason

5119
span
5113
elaboration-set-member

5120
span
5123
concession

5121
span
122
elaboration-additional

5122
span
5116
example

5123
span
5122
span

5124
span
5125
span

5125
span
5126
span

5126
span
125
explanation-argumentative

5127
multinuc
5125
elaboration-additional

5128
span
5064
Same-Unit

5129
span
5080
Same-Unit

