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I have heard/read everything from they are the end all be all and you need nothing else...to they are overpriced and overhyped. I have been pretty happy with WBMAX...but is it worth the price and the hype.
Same with Whitebox Market Neutral......I am very weary of Market Neutral funds.
They've been more defensive this year, after healthy run-up in US equity market, especially after whatsapp acquisition by FB, which Mr. Redleaf took as a signal that things were starting to get out of hand. Honestly, I think WB foresaw the recent pull-back of momentum stocks.
It's worked as a very good alternative to bonds for me this year, but still feel this fund is a good candidate as a lone holding.
It has since been renamed Whitebox Market Neutral.
Like Scott suggested when he first introduced us to Whitebox, this shop tries to bring some transparency to their process, as opposed to say the blackbox folks at AQR Funds.
I have been around a long time, and I still do not get why market neutral funds have to be so expensive. Fund managers will tell you that the marketing arm, not the fund management arm, make the ultimate decisions on expenses. Plus, how can anyone think WBLSX is market neutral with such truly wild returns since inception? 12%, 21%, 57%, -19%, 53%, -5%, 1%, 6%, 11%. This is NOT market neutral type behavior. On the other hand, it might explain the high expenses.
I agree with the market neutral stances....however, I have been very please with Whitebox Tactical Opportunities.....even though I do believe that he has been overly defensive the past 8 months or so....I also still consider WBLSX more of a long/short fund...than market neutral.....I guess it is all in who you are trying to market the fund too....
The difference between Whitebox and AQR is Whitebox tells you WTF they are doing and AQR only tells you what they are doing when they and entire market is doing well. Stay away from AQR.
Comments
They've been more defensive this year, after healthy run-up in US equity market, especially after whatsapp acquisition by FB, which Mr. Redleaf took as a signal that things were starting to get out of hand. Honestly, I think WB foresaw the recent pull-back of momentum stocks.
It's worked as a very good alternative to bonds for me this year, but still feel this fund is a good candidate as a lone holding.
(But ha! I was a fan of AQRIX also...so, fwiw.)
Here's write-up from October commentary: Whitebox Tactical Opportunities Conference Call.
WB has since eliminated load class, which I felt was positive.
And, here is David's profile from April: Whitebox Long Short Equity (WBLSX).
It has since been renamed Whitebox Market Neutral.
Like Scott suggested when he first introduced us to Whitebox, this shop tries to bring some transparency to their process, as opposed to say the blackbox folks at AQR Funds.
Regards,
Ted