Dear friends,
Welcome to the January issue of Mutual Fund Observer.
January was named after Janus, the tutelary deity of the year’s first month. As tutelary, he was guardian, patron, and protector. Absent from the Greek pantheon, Janus was the Roman god of beginnings, transitions, and endings. It was the “transitions” part that led Romans to place the two-faced god near entries and passageways, where he oversaw their comings and Continue reading →
There’s a famous New Yorker cartoon that we don’t have permission to reproduce. It shows a cheerful executive speaking from a lectern in a conference room.
And so, while the end-of-the-world scenario will be rife with unimaginable horrors, we believe that the pre-end period will be filled with unprecedented opportunities for profit!
Welcome to the case for infrastructure investing in Continue reading →
On October 14, 2024, Virtus Investment Partners launched Virtus KAR Mid-Cap ETF (KMID). It targets “U.S. mid-cap companies with durable competitive advantages, excellent management, lower financial risk, and strong growth trajectories” selling at “attractive” valuations. The fund is managed by Jon Christensen and Craig Stone who also manage the five-star, $2.9 billion Virtus KAR Mid-Cap Core Fund. The ETF, like its sibling, will hold 25-35 stocks with a Continue reading →
The ETF end of the investment industry continues to be shaped by the mutual fund end. Jeff Benjamin at ETF.com reports “The mutual fund industry is setting new records for ETF conversions in 2024. According to Morningstar, there have been 55 ETF conversions this year through Dec. 17, which compares to 35 last year and 20 in 2022. The majority of the conversions this year have been in the fixed income space…” (“Mutual Funds Convert to ETFs at Record Levels,” ETF.com, 12/19/2024). The hottest trend has been the conversion of actively Continue reading →
Dear friends,
Winter is coming.
I’m so thankful.
And welcome to the modestly delayed December issue of the Mutual Fund Observer.
Traditionally, year’s end has been a slower time. The growing season has ended, and both the farm fields and the sports fields lie mostly empty in this part of the country. Going out at night is just a touch less attractive when “night” settles Continue reading →
In everyday language, we use “chaos” to mean complete disorder or randomness – like a toddler’s playroom after a long afternoon or a desk buried under scattered papers. This kind of chaos implies there’s no underlying order or pattern at all. It suggests a temporary state of disarray that can be resolved or brought back to order.
There is, however, a second use of the term. In chaos theory, “chaos” has a precise and quite different Continue reading →
FundAlarm (1996-2011), for which I penned a monthly column, was the site that gave rise to MFO. I was drawn to Fund Alarm long ago by the voice of its founder, Roy Weitz. During the lunatic optimism and opportunism of the 1990s (who now remembers Alberto Vilar, the NetNet and Nothing-but-Net funds, or mutual funds that clocked 200-300% annual returns?), Mr. Weitz and Morningstar’s John Rekenthaler spent a lot of time kicking over piles of trash – often piles that had Continue reading →
It’s November!
Had you noticed?
That means so many things, so many changes. It’s the onset of The Golden Quarter, aka Fourth Quarter Holiday Retail Season when an inexplicable sense of panic and social obligation separates consumers from Continue reading →
On November 1, 2024, the former AlphaCentric Strategic Income Fund was rebranded as AlphaCentric Real Income Fund with a new sub-advisor, broader strategy, and new expense ratio to accompany its new name.
CrossingBridge Advisors will manage the investment strategy by employing a team approach. Portfolio managers are T. Kirk Whitney, CFA, who joined the firm as an analyst in 2013, Spencer Rolfe, who first joined in 2017, and David Sherman, CIO. CrossingBridge, with over $3.2 billion in assets as of 8/31/24 was Continue reading →
On October 15, 2024, Bridgeway Capital launched Bridgeway Global Opportunities Fund (BRGOX), a long/short equity fund that will pursue long-term positive absolute returns while limiting exposure to general stock market risk. Using advanced quantitative modeling, the fund will hold 250-300 long positions and 250-300 short positions. The portfolio is designed with a bias toward quality, value, and sentiment. It will otherwise be neutral as to country, size, sector, and beta. That is, it will shoot for a beta of zero, a net China exposure of zero, and so on.
The fund will be managed by a Bridgeway team led by Co-Chief Investment Officer Jacob Pozharny, PhD. He joined Continue reading →
Dear friends,
Welcome to the Samhain / the coming of the dark edition of the Mutual Fund Observer!
October is an interesting month. Traditionally perilous for the financial markets. It begins with the sullen remnants of summer and ends with festivals of the harvest (even for those of us in cities) and of the coming season when nature slips into dormancy. Halloween, whose sales now begin in August and whose iconic ghouls now Continue reading →
On October 1, 2024, CrossingBridge Advisors launched CrossingBridge Nordic High Income Bond Fund (NRDCX). The fund will invest in high-income bonds issued, originated, or underwritten out of Denmark, Finland, Norway, and Sweden. Those might be fixed or floating rate bonds, zero-coupon bonds and convertible bonds, and bonds issued by corporations and governments. It will be solely managed by CrossingBridge Advisors.
The managers will seek high current income, and the prospect of some capital growth, within the Nordic bond universe. Within that space, they operate with few externally imposed constraints beyond Continue reading →
Dear friends,
Welcome to the September (aka “back to school”) issue of the Mutual Fund Observer. The joyful tumult of which has slightly delayed our launch.
Despair is easy. If you ever want an antidote, drop by Augie at the beginning of September. As many of you know, in my day job, I am a professor of communication studies and director of the Austin E Knowlton Honors Program at Augustana College. I am also an advisor to first-year students. I’ve spent much of the last week meeting with and learning about my new charges. I am amazed by them, defying as they do all of the hysterical media headlines about Continue reading →
An indolent portfolio is an investor’s best friend. It is a portfolio designed to be ignored for a year at a time. Why is that a good idea? Two reasons, really. First, almost everything you do with your portfolio will be a mistake. Morningstar’s long-running series of “Mind the Gap” studies looks at the difference between investor’s actual returns and the returns of the funds in which they are invested.
Those annuals routinely show that investors’ returns Continue reading →
On September 10, 2024, Research Affiliates will launch its first ETF. Research Affiliates was founded in 2002 by Rob Arnott to provide professional and institutional investors with innovative research and product development. Mr. Arnott is iconic, having published 150 or so research articles that received both attention and rewards. His most extensive work is The Fundamental Index: A Better Way to Invest (2008). Most traditional indexes are capitalization-weighted, so they lock in a large/growth/momentum bias. Arnott notes that the bias may Continue reading →
“It’s a sure sign of summer if the chair gets up when you do.” Walter Winchell
Walter who? O tempora! O mores!
At the height of his popularity, in the late 1930s, 50 million people—two-thirds of American adults—read Winchell’s syndicated column and listened to his 15-minute Sunday-night radio broadcast. He positioned himself as a champion of “Mr. and Mrs. America,” and was the most powerful – or, at least, most Continue reading →
In July 2024, Morningstar.com published a promising but ultimately disappointing article entitled “The Best Small-Cap Funds” (7/18/2024). “Content development editor” Tori Brovet has been publishing a series of “The Best” articles (Energy Stocks, Value Funds, Bond ETFs). The article promises there are
You can do Continue reading →
On May 17, 2024, Otter Creek Advisors launched the Otter Creek Focus Strategy ETF (OCFS). In doing so, they are providing an existing separately managed account strategy which launched on May 29, 2020, as an ETF. Otter Creek was founded in 1991 to manage a long/short hedge fund and, in 2013, launched a long/short mutual fund. That four-star fund Continue reading →
I love a good mystery. WPG Partners Select Hedged is one. It is live, tracked by Morningstar, and available through Schwab, but appears on neither the Boston Partners nor WPG websites. Here’s what to know.
On May 31, 2024, Boston Partners launched WPG Partners Select Hedged, a long/short small-cap fund from its WPG Partners subsidiary. Boston Partners manages Continue reading →
On July 10, 2024 – T. Rowe Price launched T. Rowe Price Intermediate Municipal Income ETF (TAXE), an actively managed ETF. Price has 16 other ETFs, including semi-transparent and transparent equity and income funds but this is the first that does not directly mirror an existing fund.
The fund is co-managed by James Lynch and Charlie Hill, who collectively have 53 years of investment experience, and have served Continue reading →
