@Old_Skeet- NTF at Schwab / $100 minimum, fwiw.

Hello,
Although my above comment was brief ... I've done a little more kicking of the tires on the fund.
For me, I like this fund because it actively engages the market with a turnover ratio of 318%. In addition, it seems even with the fast trading (so-to-speak) it has been able to build unrealized gains inspite of frequently trading. I'm thinking this is because the flash crowd through electronic trading has shortened the holding period for stocks and this has filtered through to many dynmanic and adaptive funds. And, it's forward P/E Ratio is listed at 17.3 which indicates to me it also is looking for some value positions as well as those with momentum.
The fund reminds me a lot of Ivy Asset Strategy in its early days when I invested in it along with Marketfield. When these funds became bloated (from my perspective) they lost their ability to position rather timely in the ever changing markets. I'm thinking this fund still has some time to run before it becomes bloated. With this, I am looking for a spot somewhere in the growth area of my portfolio. But, inorder to do this something needs to go. By the way I no longer own Ivy Asset Strategy and Marketfield as (for me) they lost their luster.
The acid test ... I'd put some of my money to work in it right away if it was available for me to invest in through my broker's platform. Currently, it is not. So, that is something my broker neeeds to find a work around on and/or I could also split some money off to another shop where it can be bought.
So, with Morningstar's five stars (*****) for me it has earned them over the past twelve months. Now, let's just see if the fund can maintain this rating as money (no doubt) pours in as investors discover it. Anyway, I'm thinking it to be a good ride in the current up market and with its hedging strategies will fair better than most in a downdraft.
Old_Skeet

https://www.wsj.com/articles/the-morningstar-mirage-1508946687
(hope it will open for non subscribers)
'A Wall Street Journal analysis of Morningstar mutual-fund ratings over 14 years found that top-rated funds drew the vast majority of investor dollars, but most didn’t continue performing at that level. Morningstar said it has never billed its ratings as predictive and they should be a starting point for investors selecting funds.
"Of funds awarded a coveted five-star overall rating, only 12% did well enough over the next five years to earn a top rating for that period; 10% performed so poorly they were branded with a rock-bottom one-star rating."
There is a little consistency Five star funds averaged 3 stars in 10 years, 4 stars ave 2.8 three stars 2.5 and two stars 2.2
Thank god there is no "Snowball mirage" !

@PBKCM If I understand correctly, which I may not, your fund uses technical analysis to decide risk on / risk off, then, as of last year (maybe due to your arrival?), quantitative analysis to choose what to invest in. Held up very well in 2008-2009 (though any new fund had an advantage then, since it would have started off with cash), not so well in 2011, and overall higher returns and higher volatility compared to peers. Perfectly respectable, reasonably priced for this kind of fund, and makes sense that in a bull market it would have 5 stars.
I was going to ask how you're positioned, but I see you answered that elsewhere: risk on.
I guess I'd like to know how you're confident that you can do the risk-on/risk-off better than peers, since effective market timing is kind of the holy grail of investing: everyone is looking for it, but it may not exist.

Hi @expatsp
I can't speak with any specificity how the firm approached management before I arrived. Marty's father Lane Kerns started the firm in 1996. Marty joined the firm about 10 years ago after practicing law for 15 years. In August 2008, they launched the mutual fund.
Marty's Dad retired in 2014 shortly before I started with the firm. Initially, I was hired to build out quantitative SMA strategies and help refine the firm's hedging process (Risk On / Risk Off process). As of January 31, 2016, Marty asked me to become a PM on the fund. As described on the website, we now use those SMAs and hedging process in managing the fund.
Marty and I teamed up on the mutual fund as the market was making a major bottom, so we have not had to deal with any serious corrections yet. Time will tell whether we add alpha with our hedging process. Personally, I believe the next bear market will be more severe than the 2015-16 "bear market." If so, the potential for alpha would appear to exist.

@MikeM,
I began contributing individually to an H.S.A (I'm retired & PT self employed) a few year ago. My first contribution was a one time rollover from my SD IRA account to the Bruce Fund (BRUFX). Its historical returns are pretty good:

Anyone interested can view the fund here:
M* link to BRUFX-
morningstar.com/funds/XNAS/BRUFX/quote.html
As I have mentioned in other posts the Bruce Fund is a old school experience using snail mail for contributions and withdrawals, but the fund does have a basic online account service for viewing your account and downloading forms. I use Bill Pay at my bank which has allowed me to make monthly contributions electronically so I do not have a problem there and I infrequently make withdrawal.
I instead, keep track of my medically eligible expenses on a spreadsheet, pay for these costs out of pocket during the year and then decide at the end of the year whether I need to make a withdrawal from my H.S.A to reimburse these expenses. If not, I keep these records for the next year. H.S.A can roll eligible reimbursements into the future which is not the case with other health savings plans.
Anyway, to your question (I hadn't forgot) Bruce Fund does not offer some other features that other H.S.A provider do such as an investment platform and a debit/savings account. So no debit card, no cash account. Every dollar is fully invested in the Bruce Fund and only the Bruce Fund. From the articles I attached i would consider Optum Bank which seem to have a $1/month fee (eaccess account) and offers some mutual funds on its investment platform that interest me.
https://optumbank.com/
Mutual Fund offerings through Optum Bank (need Adobe Flash to view):
https://optumbank.com/individuals-families/how-to-invest-with-hsas/mutual-funds.html
Again, fees and transaction costs are what I have been trying to avoid. Bruce charges $15 service fee and it fund ER. No transaction costs. I may roll over a portion of my Bruce H.S.A to Optum (you are not limited to how many providers you have H.S.A with) and see how that goes. Optum seems to work with employers who offer H.S.A to their employees, but individuals can hold accounts there as well. Finally, many Credit Unions offer the H.S.A (savings/debit accounts). So I may approach a local credit union and combine that with my Bruce H.S.A.
Hope that helps and it would be great to hear form others who may have other H.S.A experiences.

Hi @expatsp
You noted 2011 and yes this was the period, when in July, Standard and Poors downgraded the "quality rating" of U.S., etc. instruments.
'Course, as things turned out; one would have done well in the long term government holdings, yes?
Views of a few selected items related to this thread, for the 2011 year.
http://stockcharts.com/freecharts/perf.php?KCMTX,SPY,IEF,EDV&l=610&r=862&O=011000

@PBKCM If I understand correctly, which I may not, your fund uses technical analysis to decide risk on / risk off, then, as of last year (maybe due to your arrival?), quantitative analysis to choose what to invest in. Held up very well in 2008-2009 (though any new fund had an advantage then, since it would have started off with cash), not so well in 2011, and overall higher returns and higher volatility compared to peers. Perfectly respectable, reasonably priced for this kind of fund, and makes sense that in a bull market it would have 5 stars.
I was going to ask how you're positioned, but I see you answered that elsewhere: risk on.
I guess I'd like to know how you're confident that you can do the risk-on/risk-off better than peers, since effective market timing is kind of the holy grail of investing: everyone is looking for it, but it may not exist.

Well, so much for Game 1. Hank - I don't know much about Verlander's history, but I'm pulling for him.
Thanks for the kind words, Old_Skeet and LLJB.
And thanks for the feedback JoJo26, would like to explore why you feel that way.
MikeM2 - you raise an interesting question. Alternatives have fallen out of favor in this long-running bull market. Even if you look at glidepaths for target date funds, there is no consensus on whether alternatives should be included, and if so, how much to weigh them.
My hunch is that: 1) alternatives will be desirable to own in the next volatile market, 2) the next volatile market could last awhile, and 3) investors will generally be late to the party getting into alternatives.
Of course, "alternatives" can encompass a lot of different strategies, so I probably shouldn't generalize. At our firm, our aggressive clients are 100% invested in our mutual fund, while our moderate clients are 60% invested in our mutual fund, if that helps.

If gold drops further I’d put a toe back in the water. Sold OPGSX @$18 couple months ago. Has dropped to around $16.50 today. I’m really concerned about the messages coming out of Washington. Corker, McCain, Flake and many former military & civilian leaders have been really unloading. (Also former Presidents of both parties.) Regardless of your affiliation, this kind of turmoil can’t bode well for the nation or the stock market.
https://www.usnews.com/news/business/articles/2017-10-24/trump-plans-lunch-with-gop-senators-as-focus-turns-to-taxes

OK. The 64K question for me is how much of this fund or Long/Short funds should be in an average Joe Tentpeg investor's Asset Allocation. 5-10-20%? What is a meaningful amount that will meaningfully dampen volatility and maybe contribute to the portfolio's return. Is it reasonable to add to a retiree's portfolio?

@PBKCM, O.K. let's narrow this down by deductive reasoning.
According to my screener (Morningstar Screener) It is 1 of nearly 15,0000 funds.
My first question...What is your fund's morning star rating (1-5*)?

Just watching paint dry and reading over the many comments. Thought I’d attempt to gain a better market perspective by grouping a few of the responses. Apologies in advance for the likely inaccuracies and/or omissions. Not scientific. Feel welcome to fill-in the blanks. Thanks to the Pudd for the thread.
Bullish Sentiment
“I have been DCA into PRGTX - TRP Global Technology since it was a new fund and the price has doubled since then. Hopefully the fund continues to run wild” ...Jafink63
“Ah, yes....new funds. They are great. Big up side potential as you get the P.M.'s. Best picks with all the money coming in. Yep, been there done that. Looks like you hit a homer, big guy! If I were you, I'd ride on. Tech is only going to get bigger as time rolls on.” Puddnhead
“On the equity front: May add a tad to certain REITS (VTR). Possibly also small positions in GE & GIS (TBD). Just re-entered small position in AMZN and a position in UTG on the price-weakness surrounding the rights-offering. Bought a small, starter position GBTC (the bitcoin trust) --as a pure speculation.” Edmond
-
Bearish Sentiment
“In a bit of good fortune, the nice little run-up has bumped two of my funds in the IRA to hit the dollar threshold for a haircut... I'm happy to take some profits off the table before that decision is announced”. PressumUP
“I remain in the cash build mode within my mutual fund portfolio due to a richly priced market.
... More pondering to do while I await the next pullback.” Old Skeet
“I remain invested, but at the high end of my allowable cash position.” hank
“With the bull ongoing, am thinking of selling a little even in roth accounts and letting it sit as cash, or in, like, GABCX”. davidrmoran
“I'm looking to sell some equities & take some risk off the table too”. expatsp
”... lowering equity exposure while allowing room to run still”. jlev
“The stock market is historically overpriced, and becoming more so by the day.”
David Snowball - October 1, 2017 Commentary https://www.mutualfundobserver.com/2017/10/
“I have to be put into the bearish camp, near retirement and more worried about "the return of my capital than the return on my capital". I have left my long term funds alone but have ratcheted down equity exposure over the year to about 30% to 35% and emphasizing short duration bonds.” sma3
Undetermined
“Opened a small position in TUHYX ...” carew388

I understand your argument with (b), but (a)? If your income is large enough to be able to max out contributions to your 401(k) and IRA ($24k next year), you really shouldn't be too worried about money.

IRA contributions are still 5500/6500 and in my view are generally useless compared to the 18K+ in the 40X accounts....it should be a similar amount, in my opinion. What I meant to say was that sure, if you are able to max out your 40X good for you -- but that shouldn't mean that one ignores investing more $$$ in a taxable account anyway if they're able to.

FYI: It is a truth (almost) universally acknowledged these days that an investor in want of a good fortune needs to be in possession of an index-tracking fund rather than an active manager. UBS AG, though, disagrees -- at least in Europe.
Regards,
Ted
https://www.bloomberg.com/gadfly/articles/2017-10-24/can-active-funds-beat-passive-ubs-says-yes-in-europe

Disagree --- one should invest in whatever type of accounts they have the opportunity to invest in - 401, 403, IRA/Roth IRA, deferred, taxable. While it's probably ok for someone to just throw their 40X into a TD fund and be done with it, I believe that anyone who says primarily invest in your retirement account -- which implies ignore taxable accounts -- is crazy since there are caps on a) contributions and b) what you might have access to in terms of funds and expense ratios.

I understand your argument with (b), but (a)? If your income is large enough to be able to max out contributions to your 401(k) and IRA ($24k next year), you really shouldn't be too worried about money.

Disagree --- one should invest in whatever type of accounts they have the opportunity to invest in - 401, 403, IRA/Roth IRA, deferred, taxable. While it's probably ok for someone to just throw their 40X into a TD fund and be done with it, I believe that anyone who says primarily invest in your retirement account -- which implies ignore taxable accounts -- is crazy since there are caps on a) contributions and b) what you might have access to in terms of funds and expense ratios.

I'm bumping this thread to the top of the stack as I have edited my comment of 10/22.

FYI: Q: I'm just starting my career and my 401(k) is invested in a diversified portfolio of stocks that tracks the overall stock market. I'm trying to decide whether to simply increase my contribution to my company plan or start investing outside my 401(k) so I can earn a higher return by focusing on specific sectors of the market, such as technology or health care. Which do you recommend?
A: Generally, I think you're better off doing your retirement savings within your 401(k). You get lucrative tax benefits and employer matching funds in most cases, plus the automatic payroll deductions ensure that you actually end up saving for retirement rather than planning to but not getting around to it.
Regards,
Ted
https://www.fidelity.com/insights/retirement/investing-beyond-401k?print=true

FYI: Hedge funds entered 2017 coming off their eighth-straight year of trailing U.S. stocks (as measured by the S&P 500 Index) by significant margins.
Regards,
Ted
http://www.etf.com/sections/index-investor-corner/swedroe-why-do-hedge-funds-exist

1. Press 0.
2. If no response, press 0 #.
3. If that doesn’t work, start screaming “Representative!” like a mad-man.
Not pretty - but usually gets their attention.