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John Waggoner: These Junk Funds Got Trashed Last Week
Looks like the usually reliable JW got two funds confused, or conflated, or something ... per M*, Fairholme (FOCIX) is up 6.11% ytd, but it's Toews Hedged HY (THHYX) that's down less than 0.1% in the last week.
JW was corrected. Fairholme was down 0.1% last week while most of high yield bond funds were down 1.5 - 2.0%.
Eaton Vance Bond fund was down 2.0%, but it also hold higher stock allocation that were also down even more. Dan Fuss's Loomis Sayles bond fared much better with only 1% loss. Also notice that the cash position has been increasing over the last 3 months.
I've been a shareholder of Eaton Vance Bond (EVBAX) since Gaffney left Loomis a couple years ago. The fund's cash position has risen to 20% with an additional 20% in equities. She typically chooses dividend generating stocks for the equity allocation. That had given the fund some upside since inception, but has been a drag on performance over the last month or so. In particular, the Arkema investment has been dismal - now down ~40% YTD.
Overall though no complaints. For those interested, you can buy shares load waived at Fidelity.
Hi Sven, M*'s performance pages yesterday (Monday) showed a loss of 0.34% for the past week for FOCIX (the Fairholme fund's ticker) versus a loss of 0.09 for THHYX, the hedged fund whose ticker the article says is Fairholme. It looks like a case of confusing the tickers, but even so, still a very good result for Fairholme versus the category. (Fairholme does end-of-quarter distributions so that wouldn't have fouled the calculation, and per the daily NAV history shown on Yahoo, M* did account for THHYX's distribution.)
Comments
Interesting.
JW was corrected. Fairholme was down 0.1% last week while most of high yield bond funds were down 1.5 - 2.0%.
Eaton Vance Bond fund was down 2.0%, but it also hold higher stock allocation that were also down even more. Dan Fuss's Loomis Sayles bond fared much better with only 1% loss. Also notice that the cash position has been increasing over the last 3 months.
Overall though no complaints. For those interested, you can buy shares load waived at Fidelity.
- AJ