As MMM himself would say, if you wouldn't buy it now then you should probably sell it. Any continued attachment to a turd fund is a lose-lose. You continue holding a bad fund at a (presumably) large fee. Kill the emotional attachment, sell the fund, realize the loss, get the tax bump, and put it in a low cost Vanguard fund. You're more likely to make the money back quicker in a Vanguard fund than in a turd fund, who cares if you make it back in the same fund you lost it in?
Regardless of the psychological effect of price you bought it at, that price is gone. You own it's current value. Putting that money into a Vanguard fund makes far more sense than keeping it in a high cost fund. Would you rather earn the money back at a ~0.1% fee or ~2% fee? Either way, you're starting with the same number of dollars, keeping it where it is means you lose more in the long run.