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FPA Funds register for institutional funds

edited February 2014 in Fund Discussions
http://www.sec.gov/Archives/edgar/data/924727/000110465914014573/a14-6835_1485apos.htm

Institutional classes to be offered: FPA Crescent Fund & FPA International Value Fund.


Comments

  • Very disappointing. FPA Crescent already has $16.1 billion in assets. They should be closing the fund rather than attracting new assets.
  • Agree. More than DODBX, but still less than many of the other usual suspects. Regardless, very disappointed in Romick and FPA. I thought they were among the (few) good ones.
  • Lot of FPA-natics on this site. Can't wait to hear from them as to why this is actually great news.
  • "From Bruce's perspective, too much money is chasing too few good ideas. This has resulted in what we call "style drift". Firms that had made their mark as small cap or mid cap investors didn't want to kill the goose laying the golden eggs by shutting off new money, so they evolved to become large cap investors. But ultimately that is self-defeating, for as the assets come in, you either have to shut down the flows or change your style by adding more and larger positions, which ultimately leads to under-performance."

    ~Ed Studzinki~

  • TedTed
    edited February 2014
    " Style Drift" my ass, its called Greed !!!$$$$$$$

    P.S. I forgot its Kenster1_Domestic Growth
  • How can they claim "Institutional classes" when the min investment is still 1500.00(?) ( AOR ) is looking even better these days.
  • edited February 2014
    Style drift can be the forced result of greed when you take in so much money.

    FPACX also added some additional co-managers and Romick isn't the lone ranger anymore. Gotta keep sharing the love, right?

    SHOW ME THE MONEY!

  • No Ted, you can call me Kenster_Large_Growth

    http://www.TedisReal.com/

  • The $1500 minimum makes it sound like they're creating a share class that will not participate on NTF platforms and will pass along the savings to the investor. I recall reading somewhere that Fidelity charges something like 40 basis points per year for funds to be NTF, so the savings can be substantial for long term investors even after paying the transaction fee.
  • edited February 2014
    Very sorry to hear.

    image

    Am I reading this wrong?
  • mns said:

    The $1500 minimum makes it sound like they're creating a share class that will not participate on NTF platforms and will pass along the savings to the investor. I recall reading somewhere that Fidelity charges something like 40 basis points per year for funds to be NTF, so the savings can be substantial for long term investors even after paying the transaction fee.

    NTF is a money marker foe brokerages for retail investor's convenience. I would rather pay lower ER with a transaction fee.
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