What is your opinion on WBMAX - Whitebox Tactical Opportunities fund ?
I bought last year as WBMRX but TDA moved me to WBMAX after Whitebox eliminated WBMRX share class.
There is no movement in the fund since I brought, and I am at 2% loss as of today. Usually, I keep the funds for long.
For example, held VHGEX for 10 years, VDGIX for 8 years, etc.
I brought this fund as an alternative for bonds and use it as a hedge fund.
I know Scott has a very good opinion about Whitebox folks. What do you guys think about it?
Are there any better alternatives in this space (tactical/hedge or whatever you call this category) ?
Thanks,
Mrc
Comments
The manager is keeping his powder dry. Not a bad idea as this market has had a good run up.
Regards,
Ted\
I own one such fund, RGHVX. My goal is to get equity like returns or even be okay with slightly less over time with a more stable ride with downside protection. Much the same reason people buy standard equity/bond balanced funds. So with that, a better question for these alternative funds would be - do they give better returns then funds like FPACX, MAPOX or PRWCX?
The answer so far has been no. WBMAX has underperformed most balanced funds in it's short existence, but it may be to early to judge. You can say the same about other alternative board favorites like MFLDX. It also has underperformed the typical balanced fund. So the quandary, at least in my mind, why not just stick with a well managed balanced fund? Newer ideas don't always work out to be better ideas.
In my mind, the only reason to own them is to get adequate returns over a market cycle with less turbulence. But again, the question is are they any better than a balanced fund? So far the answer is no.
That has been the million dollar question in a couple of threads talking about different funds. The premise this time around is that a equity bear market might be coupled with a bear market in fixed income. The bond side might be more secular than the equity side. So a balanced fund would not help in this kind of scenario.
The other threads have touched on these alt funds and Unconstrained bond funds.
http://www.mutualfundobserver.com/2013/10/whitebox-tactical-opportunities-conference-call/
Will be interesting to reassess at the three year mark, which is couple months away...I believe they will rank just above "average" in the long/short category, which as Scott points out is pretty diverse.
Here's snapshot since its inception:
I remain heavy WBMIX and a fan of Whitebox. They has lived up to their word regarding openness of fund strategy, communication with shareholders, consistency in implementation, and elimination of loads. Its er is low for the category, but it could be lower.
MFLDX, on the other hand, has been absolutely horrifying. Not at all what I was expecting even with the asset bloat. Mediocre is one thing, but down over 11% YTD?
The FAIRX blowup was painful, but it's not something I find surprising given the bets Berkowitz has been making, and I expect I'll probably be adding to my position there before long.
As was HCP. again...very strong at 1.87%.
Surprised that OAK has not held up better last couple days, given its financial strength and very strong dividend.
On the bond side, how much percentage of your portfolios would you place in fixed income during a bear market? Also would a balanced portfolio of 50% fixed income and 50% L/S funds be a mix that might work? I am not thinking of doing that but just throwing the question out there.
Have a great weekend to all.
I just don't see investors having the same ownership conviction in this grouping of funds that they might have in the more traditional types of funds rendering their effect as just noise on any given day and lackluster most of the time. Why bother.
For an quick and dirty view, on a day when my benchmark is down 1.4%, my portofolio was down 1.1%
BPLEX continues to be the cream of the crop: up 5% YTD