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Help with LCV

edited January 2014 in Fund Discussions
I'm still performing my DD, and I would appreciate some thoughts, ideas and suggestions from the board.

I'm looking for a LCV fund in a taxable acct., so Tax Eff. is important among other metrics such as reasonable volatility, beta, after tax returns and preferably below avg AUM.

The most intriquing candidates to-date are Amer. Beacon Bridgeway LV (BRLVX/BWLIX); Becker Value (BVEFX) and Commerce Value (CFVLX). There are a couple of other options but I never heard of most of them.

Any comments on these or other suggestions would be greatly appreciated. I posted this on M* as well.




  • Have you considered an Index fund or an eft that would also be tax efficient?
  • About three years ago I went through this same exercise, same constraints. The three funds I came up with were Blackrock Equity Div MSDVX (now available NTF in a slightly cheaper share class MDDVX), Becker, and Invesco Diversified Div (LCEIX).

    In the ensuing three years, Blackrock has gotten bloated and has way underperformed. The Invesco fund has done so so, but since I was looking at conservative funds and the market has been on a tear, that's likely acceptable. Not a small fund ($9B), but extremely low turnover (9%) tends to compensate.

    Becker continues to impress. A bit more volatile than the others I mentioned, but still about average. I recall that its portfolio at the time was more of a blend, so it is clearly not a deep value fund, and may drift a bit. That's fine by me, but different things matter to different people.

    The Am Beacon/Brideway fund obviously just got creamed by Best Buy (2nd biggest holding after S&P 500). Aside from that, it looks like a fine fund, and I'm generally a fan of Bridgeway. Recognize that unlike the "true" Bridgeway funds, the retail version is a bit pricey for a quant. (And that it's operating under a fee waiver through 4/30/14.) I'm guessing that the reason it wasn't on my list was that I wanted funds that would consider foreign stocks, and this fund only buys companies listed on the US exchanges (which doesn't exclude all foreign companies, but limits the pool).

    Don't know anything about CFVLX. Just took a quick look and I see it's rather concentrated (43 stocks). Some people like that, others don't; but it is something that differentiates it from all the other options you and I listed.

  • Matt,

    Have you looked at ARTLX?

    It had a subpar 2013, but I think Artisan is a good house, has good managers, and I would expect ARTLX to shine again.

  • Thank you everyone, I appreciate your thoughts and ideas!!!

    Bee, I have not looked into ETF's, I'm not very familiar with them and I'm not sure how to evaluate them; any suggestions????

    msf, agree with everything you said. I am one who does like the concentration of holdings, IF you can trust the mgmnt. But I nothing about the Commerce people, so that scares me a little.

    Mona, I have thought about ARTLX. In fact, I owned it for a short while when it first came available. Artisan is a great shop!! But I did not include that in my options because I own ARTQX and ARTMX. I know they are both MC and I not sure I want to own three funds from the shame relatively small house. Maybe I am wrong on this, what do you think???

  • Reply to @mcmarasco: Here's two eft suggestions using this mutual fund to etf converter site. What I like about Vanguard etfs are that they do not have trading fees on many etfs through their brokerage.

    Use this converter to search for other etfs using fund suggestions amde by others.
  • Reply to @mcmarasco: BVEFX & BWLIX are excellent choices. Here Are a few more for you to consider.
  • I would not get hung up on style boxes. Something like OSTFX is style-box agnostic. Great fund, low volatility, and has held up very well in big market downturns. Also small number of holdings, so less likely to look like an index fund. GSRLX is also style-box agnostic. M* puts it in LCG, but due diligence will tell you that is NOT how the fund is managed.
  • Thank you all again!

    bee, I never knew a tool like that existed; I appreciate you sharing that with me!!

    Ted, I will look into your alternative suggestions!

    BobC, I try not to get too hung up on "style boxes" but I have a fair amount of "growth" oriented investments so I was trying to "balance" that with a little LV. I've heard of Osterweis, but it did not come up in my search, I will check it out. I'm surprised any fund with "Rising Dividend" in its name would be growth oriented, but I will check it out also.

  • I own HULIX for LCV for about a yr. Compare HULIX to ARTLX, these are the info.


    ytd 0.14% -1.49%
    1 yr 30.97 19.12
    3 yr 17.27 12.77
    5 yr 27.75 18.25

    And these are the rating according to WSJ

    ytd 1yr 3yr 5yr

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