Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Support MFO
Donate through PayPal
Just perusing some fund fact sheets, and seeing caution evident among some top value investors...
Very interesting observation, considering the ongoing discussion/debate with respect to any expectation that a fund manager has either an obligation or even an inclination to use their judgement to protect fundholders from downside disasters. Sure makes me wonder!
There are a handful of managers I guess I would trust to act as true fiduciaries. The managers of the above-named funds are probably as good as one might find in that regard, with some quibbles. FPACX's AUM is growing (but so is its analytic staff and scope), who knows if FESGX would ever close (Chuck and Charles of IVA left First Eagle to spend more time investing than garnering AUM, but have underperformed FESGX; and incidentally like the FPA crew). Tweedy, Browne practices what they preach and eats their own cooking, but their fees are high by any measure.
But each of the above is miles apart from Royce/Legg Mason who only really wants your cash. Templeton I'm on the fence about.
Personally I agree with them about being cautious, and I suppose the 'sell in May and go away' crowd also would agree, but it's only fair to mention that they all have been defensive for quite awhile now. It's probably only fair also to mention that I've agreed with that position, too.
Vert -- agree. I should have mentioned that. FPA, IVA, and FEagle have all been quite dubious of the grand experiment now underway. I should have called greater attention to the fact that in spite of their persistent reservations, the cash positions at all three seem to have increased by 10 percentage points.
These are extremely odd times (before throwing in Putin's latest moves). As far as I'm concerned, caution is very much warranted. I regret that I did not sell JPM a couple of weeks ago. My wife requested 10 years ago when she started investing that I build for her a conservative portfolio. Her approach has continued to trump mine.
Comments
Very interesting observation, considering the ongoing discussion/debate with respect to any expectation that a fund manager has either an obligation or even an inclination to use their judgement to protect fundholders from downside disasters. Sure makes me wonder!
OJ
FPACX's AUM is growing (but so is its analytic staff and scope), who knows if FESGX would ever close (Chuck and Charles of IVA left First Eagle to spend more time investing than garnering AUM, but have underperformed FESGX; and incidentally like the FPA crew). Tweedy, Browne practices what they preach and eats their own cooking, but their fees are high by any measure.
But each of the above is miles apart from Royce/Legg Mason who only really wants your cash. Templeton I'm on the fence about.
These are extremely odd times (before throwing in Putin's latest moves). As far as I'm concerned, caution is very much warranted. I regret that I did not sell JPM a couple of weeks ago. My wife requested 10 years ago when she started investing that I build for her a conservative portfolio. Her approach has continued to trump mine.