Q: I am beside myself about my Sprint Nextel Corp. shares. Is there any hope? — F.T., via the internet

A: The wireless carrier has struggled to integrate its operations since Sprint's acquisition of Nextel Communications in 2005.

Nextel was a profitable leader in attracting big-money business services, while Sprint's strength was an ability to steadily gain consumer users. But their corporate brands, cultures and technologies haven't meshed.

The firm posted a $29.6 billion loss last year after writing down the value of Nextel because of problems with network quality and customer service. Its debt rating was cut to junk by Standard & Poor's.

After losing a million wireless customers last year, it lost more than a million in the first quarter of this year. It now has 52.8 million paid subscribers and continues to lose market share to Verizon Wireless and AT&T Inc.

Sprint Nextel (S) shares are down 30 percent this year following a decline of 30 percent last year and 11 percent in 2006.

As far as hope for the future, there have been reports that Germany's Deutsche Telekom AG, which owns T-Mobile USA Inc., has considered making a bid for the firm. Another possibility would be a spin-off or sale of Nextel.

Otherwise, you'll need faith in its ongoing steps to upgrade the quality of its subscriber base and customer service. To save money, it is cutting 4,000 jobs and closing 125 retail locations.

"Too many good customers have walked out the door unhappy with us," chief executive Dan Hesse, who has been shaking up top management since taking charge in December, said at the firm's annual meeting. "Improving our performance will take time."

Consensus rating on Sprint Nextel shares is "hold," according to Thomson Financial. That consists of six "strong buys," three "buys," and 22 "holds".

Sprint Nextel and Clearwire have initiated a partnership to sell high-speed wireless broadband services utilizing WiMax technology. The venture includes funding from Intel, Google, Time Warner Cable and Comcast. But the WiMax standard the firm is heavily banking on hasn't yet been proven on a large scale.

Earnings are expected to decline 89 percent this year, versus a 63 percent drop predicted for the wireless communications industry, according to Thomson. (Write-downs and other special items that contributed to last year's loss are excluded in those estimates.) Next year's projected eight-percent increase compares with a 10-percent gain forecast for its industry. The five-year annualised return is expected to be nine percent versus 11 percent for its peers.

Q: Please explain prospects for Oakmark Fund, which doesn't seem to be what it once was. — M.C., via the internet

A: Sometimes, bad things happen to good portfolio managers.

Consumer and financial stocks have been whacked, taking a toll on this fund's results. A number of holdings, such as Washington Mutual Inc. and Citigroup Inc., stumbled badly. Returns also were hurt by a lack of energy stocks.

Nonetheless, this fund has two seasoned portfolio managers who took over in 2000.

William Nygren, who also has successfully run Oakmark Select Fund, has been with parent firm Harris Associates since 1983. Kevin Grant had been an analyst with Harris since 1988. Both invest in the fund themselves, and their bonuses depend directly on its performance.

The $4.4 billion Oakmark Fund (OAKMX) is down 10 percent over the past 12 months and has a three-year annualised return of five percent. Both results rank in the lowest 10 percent of large growth and value funds.

"This fund has been up and down, but I recommend it because I like its strategy and low turnover," said Paul Herbert, analyst with Morningstar Inc. "Even though the managers misjudged the downturn in financials, they don't get discouraged when a stock falls, but rather add to it."

Oakmark Fund focuses on stocks that trade at a discount to their intrinsic value, and it has lately added growth stocks that are down in price. It is buying more large-cap stocks as well.

The managers study cash flow carefully. They conduct a wide-ranging search for ideas, looking for growing businesses whose top executives have incentive packages aligned with shareholder interests. They are willing to make significant sector bets, which means the portfolio and returns often differ considerably from other large growth-and-value funds.

Consumer services, consumer goods, financial services and media are its largest concentrations. Top holdings are Yum Brands Inc., Viacom Inc., Best Buy Co., Intel Corp. and Texas Instruments. This "no-load" (no sales charge) fund requires a $1,000 minimum initial investment. The annual expense ratio of 1.01 percent is not among the least expensive in its category.

Q: Please tell me exactly what is included in a mutual fund's expense ratio. This is still confusing to me. —C.R., via the internet

A: The annual expense ratio represents recurring management fees as a percentage of a mutual fund's assets. It shows what it costs the investment firm to operate the fund.

That is important because those expenses are taken out of the fund's assets and lower its return to investors. It includes managerial expenses, administrative costs, so-called 12b-1 marketing fees for advertising and promotion, and other operational expenses.

"The 12b-1 fee is required by law to be broken out as a separate line in a fund's prospectus," said Edward Giltenan, a spokesman for the Investment Company Institute in Washington, DC.

The expense ratio does not include the fund's trading activity in stocks or bonds. It also doesn't include sales charges or redemption fees paid directly by the investor.

The average mutual fund's annual expense ratio was 0.9 percent last year, which was flat after several years of decline, according to Morningstar. International and small-cap funds tend to have higher expenses because they have more research and staffing, while index funds have lower expenses because little management is required.

(Andrew Leckey answers questions only through the column. Address inquiries to Andrew Leckey, P.O. Box 874702, Tempe, Ariz. 85287-4702, or by e-mail at andrewinv@aol.com.)