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If I already own FPACX and FPIVX, should I even worry about buying any more FPA funds? Thinking FPRAX seems overkill and FPPFX seems "has been". Leaves FPNIX as a diversifier to RSIVX.
"Does anyone out there own FPNIX?" Yes. Not a lot, but I'm considering increasing my position. It's a very unique income fund in that I don't believe it has ever lost money in a calendar year while managed by FPA, which IIRC is 30 years. Their first goal is not to lose money. A lot of funds say that, but FPNIX puts it into practice. Performance has often suffered due to this risk aversion, but not losing is more important to them than gaining. I like Tom Atteberry. They are very concerned that interest rates are historically low and are going to rise, and they have positioned themselves according to that thesis. The duration is only 1.51 years, and the yield is very high for the amount of duration risk taken: 3.5%. On their website, fpafunds.com/ they have a major presentation given by Tom Atteberry showing FPA's fixed income thesis:
October 17, 2013 Presentation to CFA Institute: Fixed Income Portfolios in the New Frontier By Thomas H. Atteberry It's very educational and shows their strong opinions on interest rates.
Another item on their website: December 23, 2013 Morningstar describes FPA New Income as "An intriguing choice for interest-rate bears."
FPA has their Investor Day coming next month, so there should be a lot of information coming from that. And FPNIX just had their First Quarter 2014 webcast about a week ago, available for viewing/listening online. About 58 minutes.
Yes, you should buy the other FPA funds so that you have the entire collection
Sorry about the sarcasm, but do you need a global fund having many of the same stocks as the international fund? Do you need a mid cap growth fund or a very conservative bond fund if you already own one? Aren't those the questions to answer?
Buying similar funds in the same category for diversification is hog-wash. Pick a good fund manager in the area you want to be in and go with him or her or that team. You aren't going to have the winning horse every year, but 1 good manager will give you results over time. Multiple funds will result in returns < the index.
MikeM: " Buying similar funds in the same category for diversification is hog-wash" One of the biggest mistakes some MFO's make. Regards, Ted
Why not give your reason why Ted? We would like to know. I myself do not see diversification buying funds in the same category. Too much overlap in most cases. Good research will point one to the better funds.
@JohnChisum; In most cases fund managers fish in the same waters, therefore; its very easy have a great deal of stock ot bond overlap with funds in the same category. Regards, Ted
Thanks guys. I asked because perhaps I could just buy FPRAX and sell FPACX and FPIVX. Maybe that is not equivalent. However, I didn't want to ask THAT question. Remember, I'm trying to reduce my number of holdings.
I wish FPACX manager was on FPRAX...that would have sealed the deal. I'll keep my FPACX and FPIVX. It seems to be working for me with buying CIOVX instead of CIVVX and CEMVX.
Comments
Yes. Not a lot, but I'm considering increasing my position. It's a very unique income fund in that I don't believe it has ever lost money in a calendar year while managed by FPA, which IIRC is 30 years. Their first goal is not to lose money. A lot of funds say that, but FPNIX puts it into practice. Performance has often suffered due to this risk aversion, but not losing is more important to them than gaining. I like Tom Atteberry.
They are very concerned that interest rates are historically low and are going to rise, and they have positioned themselves according to that thesis. The duration is only 1.51 years, and the yield is very high for the amount of duration risk taken: 3.5%.
On their website, fpafunds.com/
they have a major presentation given by Tom Atteberry showing FPA's fixed income thesis:
October 17, 2013
Presentation to CFA Institute: Fixed Income Portfolios in the New Frontier
By Thomas H. Atteberry
It's very educational and shows their strong opinions on interest rates.
Another item on their website:
December 23, 2013
Morningstar describes FPA New Income as "An intriguing choice for interest-rate bears."
FPA has their Investor Day coming next month, so there should be a lot of information coming from that. And FPNIX just had their First Quarter 2014 webcast about a week ago, available for viewing/listening online. About 58 minutes.
Sorry about the sarcasm, but do you need a global fund having many of the same stocks as the international fund? Do you need a mid cap growth fund or a very conservative bond fund if you already own one? Aren't those the questions to answer?
Buying similar funds in the same category for diversification is hog-wash. Pick a good fund manager in the area you want to be in and go with him or her or that team. You aren't going to have the winning horse every year, but 1 good manager will give you results over time. Multiple funds will result in returns < the index.
Regards,
Ted
Regards,
Ted
Why not give your reason why Ted? We would like to know. I myself do not see diversification buying funds in the same category. Too much overlap in most cases. Good research will point one to the better funds.
Regards,
Ted
Agree. Fund companies but shares of stock and distribute them amongst their funds as they see fit. It is easy to have duplication in those cases.
I wish FPACX manager was on FPRAX...that would have sealed the deal. I'll keep my FPACX and FPIVX. It seems to be working for me with buying CIOVX instead of CIVVX and CEMVX.