Sadly, I am considerably scrawnier than the photo of my online doppelganger in this month's commentary, but I must say it is hilarious. (I do think I have a poet's fine features, though, more of a Lord Byron type than a body builder.
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Regarding the five undiscovered funds, the one I found most interesting personally was Clearbridge International Small Cap (LCOAX). I should add that though technically a load fund, it is available at major brokers like TD Ameritrade with the load waived. One reason it intrigued me is that the managers designed it from the outset to only invest in a portfolio of stocks that a $2 billion in assets fund could also invest efficiently in. So they've employed intensive liquidity screens from the get go. The reason that is interesting is they think the fund's capacity is $2 billion so that the portfolio and the fund's style should remain consistent even as it grows. That kind of forethought is unusual in the fund world and should prevent the inevitable style drift you see at other funds as they grow. It is also difficult to find good international small-cap funds as the field is relatively narrow. That's one of the reasons I upped the screen in the story to funds under $200 million, not just $100 million and under.
I also think LKCM Balanced is a solid fund for conservative long-term investors--low fees, low turnover, low asset base and a deep analytical staff. Sarofim Equity, although performing terribly of late, could also make an excellent contrarian play when high quality mega cap stocks come back in favor.
Comments
Nuts. Well, maybe an after Christmas coffee in the Strip? With luck I'll be raiding Prestogeorge's some time just before New Years.
Everyone - thanks for this issue!