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One of my long term holdings, Yacktman Focused, is down almost 7% YTD while it seems other similar category funds are up almost as much. With the AMG ownership now, the son taking over for his father (I believe), asset growth, etc, is this fund losing for good whatever it's had which made it so dependable? Seeking advice on if it's time to move on to something better and any recommendations.
I am holding (only) because I trust the family and the method, but cannot affirm that that is necessarily good advice. In retirement I value downside protection and assume Yackts still have that. As for alternatives, I have moved a lot into DSENX.
I dumped it a few weeks ago. I don't care if it does well in a down market. It's been doing poorly for five years now. In addition, it does have a high ER for its category. I found more reasons for dumping it than holding it.
I also was not seeing the downside protection, and felt uncomfortable with the fund since the AMG move. So....I swapped it this past Friday for GLRBX. I had been admiring this fund for several years, and the recent MFO spotlight got me moving. It is not a one for one match in terms of portfolio allocation, but it fit my current plans.
Here is one more perspective for you to consider....
This is a fund I evaluate over a full market cycle (or maybe 10 years). I made my first investment in YAFFX in 1997 shortly after the fund opened for business. The fund lost about 20% during its first 3 years of existence while the S&P 500 was gaining about 90%. But, by mid 2002, its performance since inception had surpassed the S&P 500. And, since inception, it has now turned $10K into about $50K versus about $36K for the S&P 500.
During the past 3 years, YAFFX is up about 35% while the S&P 500 is up almost 60%. So, it is again lagging the S&P 500's performance in an aging bull market, but not by nearly as much as it did during its first 3 years of operation.
I don't see that the investment process has changed due to the son's involvement or AMG. And, I don't see asset level to be a problem due to the fund's investment universe and low turnover rate.
I do any decided upon culling in my core portfolio once a year. But, I currently plan to stick with YAFFX at least until the next substantial downturn in the market has run its course.
This is actually a good reason to own "many" funds. YAFFX is a focused fund. If you have 10% of your Portfolio in it, I can understand the need to sell. I have 3% of my IRA in it, well less now. I'm keeping it.
Near term numbers pretty poor, even spending some time as a Three Alarm Fund, but across the last two full cycles, pretty strong...the fund is also now part of AMG's stable:
As I recall @David_Snowball said something about three bad years in a row being a good indicator that things weren't going to come back. But it seems to me that the fund is performing as advertised. As is RWGFX.
As I recall @David_Snowball said something about three bad years in a row being a good indicator that things weren't going to come back. But it seems to me that the fund is performing as advertised. As is RWGFX.
Please clarify if you mean both funds are keepers or otherwise.
I'm keeping RWGFX, which I bought when I became concerned about valuation. I think that as long as the bull market continues (which I assume will be at least a year) that they will underperform, but that between now and the bottom of the next bear they'll outperform. So if you're buying for outperformance in the next year I'd say don't keep them. Over the longer term or if you don't want to worry about timing, I'd say they're keepers.
Comments
This is a fund I evaluate over a full market cycle (or maybe 10 years). I made my first investment in YAFFX in 1997 shortly after the fund opened for business. The fund lost about 20% during its first 3 years of existence while the S&P 500 was gaining about 90%. But, by mid 2002, its performance since inception had surpassed the S&P 500. And, since inception, it has now turned $10K into about $50K versus about $36K for the S&P 500.
During the past 3 years, YAFFX is up about 35% while the S&P 500 is up almost 60%. So, it is again lagging the S&P 500's performance in an aging bull market, but not by nearly as much as it did during its first 3 years of operation.
I don't see that the investment process has changed due to the son's involvement or AMG. And, I don't see asset level to be a problem due to the fund's investment universe and low turnover rate.
I do any decided upon culling in my core portfolio once a year. But, I currently plan to stick with YAFFX at least until the next substantial downturn in the market has run its course.