Yes, a fund manager would have a DUTY to sell such shares at exactly that price, if he thought the company were going bankrupt. Those shares would be worthless and he'd WISH that he had sold at .40 per share.
Clearly you don't understand the obligations that apply to fund managers.
He has a strong belief that there is substantial value here now, despite the current share price. That is the only justification or reason that he would have for holding the stock, and despite much pressure he has likely been under, not just from peers and in newspapers, but probably even internally, he has held on. People invest with him because they trust his ability to make distinctions in exactly this kind of situation.
He has an upstanding and proven record, by the way, and AF manages no money. He does not have a fund and is not a successful money manager. Those who say he has saved them money, good for them. But if he truly had a great record, he wouldn't be earning pennies writing that very bad column of his.
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