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I'm getting a tad worried. Down over 6% YTD. I was ready to average down, but wondering if I should just wait a little. Hillary brothers don't seem to be that short and a 3rd of the fund is in cash.
@VintageFreak: Opportunity, are you kidding, and you should be worried. YTD -(5.69)%, 1-Year 9.49%, 3-Year 3.86%, during same period S&P 500 YTD 2.56%, 1-Year 20.44%, 3-Year 13.83% + LSOFX expense ratio above average, just another alternative fund you shouldn't own Regards, Ted
@Scott " I'm not sure why L/S funds keep being compared to the S&P", because all of the stocks in the portfolio are members of the S&P 500. Regards, Ted
Wow, I'm glad I got out of this fund about a year ago. I haven't been paying attention to this fund since I got out, so it looks like I made the right move. I also recently got out of PMHIX. I could be wrong, but these two funds seem like mostly long with an aggressive tilt, with only mild short exposure (PMHIX is focused so that might have been hurting it recently). I've learned to stick with funds more conservatively oriented, paying more attention to the downside , or "market inefficiencies" for my long-short exposure. LSOFX and PMHIX don't seem to behave this way so I said goodbye.
There are various flavors of Long/Short funds. The LSOFX kind are the ones where the best that could happen is they are right on the Long side AND the Short side. The worst is they are wrong on both sides.
Needless to say LSOFX is not "conservative" fund, just because Long/Short is in the name or in M* category.
However the PIMCO fund I feel is different. It's masquerading as Long Short. It is EITHER long or short, like CGMFX. It is making wild calls. Needless to say CGMFX is not classified as Long/Short fund by M*. Then again, I give two hoots about M* classification.
I'm going to watch LSOFX. Trading funds is allowed if you do it right.
Robeco's new global long-short fund just opened to retail investors if you want to consider a replacement (I believe the other Robeco long-short funds are now closed). Robeco is one of the few fund families I trust in this space. Good luck with whatever you decide!
VF, I realize that I am in the minority here, but do you really need a L/S fund ? I have yet to read any convincing evidence that anybody needs a L/S fund as part of a diversified portfolio. The space has very few long-term and consistent winners as the managers must pick the right winners and right losers, all the while burdening investor returns with outrageously high actual expenses.
Many L/S funds have had their day in the sun, but as their performance lags, the forum chatter dies down to absolute silence. Remember TFSMX, or even the revered MFLDX ?
Kevin, I'm not looking at L/S fund per se, just to own one. I'm also not necessarily looking for a fund that is actively Long/Short like LSOFX. I'm looking for a fund however that uses Long/Short as a risk management tool from the sense of when valuation gets out of whack it will not buy. Shorting is incidental and I don't really term these are L/S funds regardless of how anyone classifies them as L/S or not.
I own HSGFX and say that unashamedly. I also own TFSMX. I used to own MFLDX but switched to TFSMX.
Thanks for telling me Robeco Global L/S retail shares are now available. I will check it out.
http://www.mutualfundobserver.com/discuss/discussion/12630/thoughts-on-otter-creek-long-short-otcrx/p1 Nod to rsorden .After a month travelling out west, opened a new position in OTCRX after reading above post and a little home work.From the prospectus:(emphasis added) 'The Fund employs a “long/short” investment strategy to attempt to achieve capital appreciation and manage risk by purchasing stocks believed by the Advisor to be undervalued and selling short stocks believed by the Advisor to be overvalued. The objective of the Fund is to generate absolute risk-adjusted returns with a focus on long-term capital appreciation with below average volatility by investing in opportunities both long and short which are driven by intensive fundamental analysis. Under normal market conditions, the net long exposure of the Fund (gross long exposures minus gross short exposures) is expected to range between -35% and +80% net long. The Fund may also invest in investment grade fixed income securities, including up to 30% of theFund’s assets in corporate and convertible bonds as well as debt issued by the U.S. Governmentand its agencies. Additionally, up to 30% of the Fund’s net assets may be invested in high yield (“junk bonds”). High yield bonds are securities rated by a rating organization below its top four long-term rating categories or unrated securities determined by the Advisor to be of equivalent quality. The Fund may utilize leverage of no more than 30% of the Fund’s total assets as part of the portfolio management process. From time to time, the Fund may invest a significant portion of its assets in the securities of companies in the same sector of the market. The Fund may also invest up to 10% of its net assets in derivatives including futures, options, swaps and forward foreign currency contracts. These instruments may be used to modify or hedge the Fund’s foreign currency contracts. These instruments may be used to modify or hedge the Fund’s exposure to a particular investment market related risk, as well as to manage the volatility of theFund. " http://www.ottercreekfunds.com/media/pdfs/Summary_Prospectus.pdf
Pretty much a go anywhere fund with the ability to leverage! With only $17+million in assets it has performed quite well Y T D .Can it execute the strategy as its assets increase? Nice updated Fact Sheet. http://www.ottercreekfunds.com/media/pdfs/OCL_Factsheet.pdf
Reply To Vintage Freak - I Purchased AZDDX Because Of The Diversity Of Its Holdings. It Buys Stocks & Bonds In America, Europe, The Pacific Region, And Also Some Emerging Markets.
Comments
Regards,
Ted
M* Snapshot Of LSOFX: http://quotes.morningstar.com/fund/f?t=LSOFX®ion=usa&culture=en-US
Regards,
Ted
Needless to say LSOFX is not "conservative" fund, just because Long/Short is in the name or in M* category.
However the PIMCO fund I feel is different. It's masquerading as Long Short. It is EITHER long or short, like CGMFX. It is making wild calls. Needless to say CGMFX is not classified as Long/Short fund by M*. Then again, I give two hoots about M* classification.
I'm going to watch LSOFX. Trading funds is allowed if you do it right.
Many L/S funds have had their day in the sun, but as their performance lags, the forum chatter dies down to absolute silence. Remember TFSMX, or even the revered MFLDX ?
Kevin
I own HSGFX and say that unashamedly. I also own TFSMX. I used to own MFLDX but switched to TFSMX.
Thanks for telling me Robeco Global L/S retail shares are now available. I will check it out.
Ducrow, please enlighten on why AZDDX?
Nod to rsorden .After a month travelling out west, opened a new position in OTCRX after reading above post and a little home work.From the prospectus:(emphasis added)
'The Fund employs a “long/short” investment strategy to attempt to achieve capital appreciation and manage risk by purchasing stocks believed by the Advisor to be undervalued and selling short stocks believed by the Advisor to be overvalued. The objective of the Fund is to generate absolute risk-adjusted returns with a focus on long-term capital appreciation with below average
volatility by investing in opportunities both long
and short which are driven by intensive
fundamental analysis. Under normal market conditions, the net long exposure of the Fund (gross long exposures minus gross short exposures) is expected to range between -35% and +80% net long.
The Fund may also invest in investment grade fixed income securities, including up to 30% of theFund’s assets in corporate and convertible bonds as
well as debt issued by the U.S. Governmentand its agencies. Additionally, up to 30% of the Fund’s net assets may be invested in high yield (“junk bonds”).
High yield bonds are securities rated by a rating organization below its top four
long-term rating categories or unrated securities determined by the Advisor to be of equivalent quality.
The Fund may utilize leverage of no more than
30% of the Fund’s total assets as part of the
portfolio management process. From time to time, the Fund may invest a significant portion of
its assets in the securities of companies in the same sector of the market.
The Fund may also invest up to 10% of its net assets in derivatives including futures, options, swaps and forward foreign currency contracts. These instruments may be used to modify or hedge the Fund’s foreign currency contracts. These instruments may be used to modify or hedge the Fund’s
exposure to a particular investment market related risk, as well as to manage the volatility of theFund. "
http://www.ottercreekfunds.com/media/pdfs/Summary_Prospectus.pdf
Pretty much a go anywhere fund with the ability to leverage! With only $17+million in assets it has performed quite well Y T D .Can it execute the strategy as its assets increase?
Nice updated Fact Sheet.
http://www.ottercreekfunds.com/media/pdfs/OCL_Factsheet.pdf
AZDDX. Sorry. 5 managers. Not a cent invested in fund by anyone. Not happening.