February/March 2009 Features Spotlight: Cracking Risk Why standard models and measures fail to give investors a true indication of investing’s hazards. 28 Déjà Vu All Over Again When risk models fall short, advisors need to look no further than the historical record to plan for the next 100-year flood. 34 A Failure to Gauge Risk The financial crisis burned shareholders of funds once considered safe. Why didn’t investors see it coming? 38 Five Areas to Find Opportunities These sectors got pounded for reasons more technical than fundamental. Morningstar Conversation 40 Getting a Read on Risk As investors awaken to the risks of investing, our distinguished economics panel debates the value of current risk models. Undiscovered Managers 48 Heavenly Returns Nick Kaiser’s Amana funds, which invest according to Islamic law, are trouncing their large-cap competition. 52 Greenspring Comes to the Rescue Chip Carlson’s fund has been a safe haven for shareholders during the financial crisis, which continues to turn up deals for the manager. 3