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Market field Mainstay Fund Sellers a Fickle Bunch?
A fund that has had 2.2 billion in recent redemptions ... Makes them a fickled bunch? I don't think so.
I was invested in the fund for a good while and left becasue of its assets bloat not because of its managers. Seems Mainstay tried to be too many investors sweetheart with this fund! Mainstay should have closed this fund a long time ago to new money. Perhaps with a good number of investors leaving and now with reduced AUM the managers will be able to better position the fund in ever changing macro environments ... and, it might now become to have respectable returns. In the early years I made good money in this fund but after it became bloated the returns began to wane.
Should this happen ... Then we know it was asset bloat! I like the manager ... but, not what Mainstay did in leaving the fund open and letting it become, by my thinking, to large to manage.
For better or worse, I can tell you that MFLDX management has the final say on whether the fund is open or closed. That does not make the current situation any better, but it might remind shareholders the fund makes huge macro bets with its long-term strategy. Historically the bets have been very good, but they are having a lousy year in 2014. Folks should remember, assuming they actually read the fund's prospectus, MFLDX is not a typical long-short equity fund. Perhaps the fund deserves to lose a third of its assets, perhaps not. But my bet is that much of the dollars pulled will be chasing whatever looks hot. Statistically that is about what happens with the average retail investor.
Comments
I was invested in the fund for a good while and left becasue of its assets bloat not because of its managers. Seems Mainstay tried to be too many investors sweetheart with this fund! Mainstay should have closed this fund a long time ago to new money. Perhaps with a good number of investors leaving and now with reduced AUM the managers will be able to better position the fund in ever changing macro environments ... and, it might now become to have respectable returns. In the early years I made good money in this fund but after it became bloated the returns began to wane.
Should this happen ... Then we know it was asset bloat! I like the manager ... but, not what Mainstay did in leaving the fund open and letting it become, by my thinking, to large to manage.
Old_Skeet