The Facebook stock offering has been an unqualified debacle.  Many investors got lured into the hype, while others smartly passed.  The stock price is down nearly 50% from the initial offering price as of yesterday’s close at $19.44.  By the way, the S&P 500 has gained more than 9% during the same time period.

What’s a bit more surprising is how some mutual funds dove in without abandon.  For example, Morgan Stanley funds took big bets on Facebook.  Eight of their funds have >5% of their assets invested in Facebook.

In June, a commentary on Morgan Stanley’s fund website reported that Facebook and other tech stocks were “the leading detractor in the portfolio this quarter,” discounting the decline in Facebook shares “to post-IPO volatility.”