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I am a long term share holder in this fund but last 10 years have been miserable if you look at 1, 3, 5, 10 years performance. Has this fund lost its charm ? (bottom 10% of smallest). I have been unable to decide if to hold this fund or trim it enough for now to stay in the fund? It is missing consistency and inception to today performance still looks excellent but not last 10 years.
I'm in the same boat. Again, this is one of those funds that had so much going for it -- long term outperformance, manager with major skin in the game, small asset base, great investor-friendly stewardship, below average fees -- that its failure basically since 2008 has made me question whether trying to find outperformance through active management isn't a fool's errand.
It's also made me think that @junkster has the right idea with his version of momentum fund investing, though I don't think I have the tools to do it myself.
I'm planning to hold BRUSX a while longer, until I sense / guess that the market is nearing a top. I don't want to take the capital gains hit until I'm at a moment when I want to dial down my equity allocation anyway.
Maybe by then it will shine again and I'll end up sticking to it.
I still maintain taxable and non-taxable positions in BRUSX. Sure, the fund has some of bad years, but WSCVX also had some good years in the beginning;however, the last several years have not been so fantastic in comparison as value has not been doing well compared to growth as well as the overall market dropping. Currently adding a monthly ACH to my BRUSX taxable account while the fund is in the doldrums.
It's been some time since I left Bridgeway's small-cap offerings. What strikes me is that Montgomery promised to re-jigger his methodology in hopes of preventing a huge draw-down like the one in 2007-2009. A glance at the chart Charles posted above demonstrates that in 2009-2015 the tiger did not change its stripes (highest risk, lowest return). I'd like to believe in the Bridgeway story, but it reminds me of my misguided beliefs in certain story stocks. That money never came back up out of the rabbit hole.
Second there will be a time to buy small cap value. At that time we can decide whether we want to but BRSIX or some other small cap value fund. I don't need to believe in any "story" at Bridgeway. It is always when you buy before what you buy.
I don't need to mention the pay structure at Bridgeway or the amount of charitable work he does I suppose. Any one wanting to buy a Bridgeway fund should be aware of these things.
Comments
It's also made me think that @junkster has the right idea with his version of momentum fund investing, though I don't think I have the tools to do it myself.
I'm planning to hold BRUSX a while longer, until I sense / guess that the market is nearing a top. I don't want to take the capital gains hit until I'm at a moment when I want to dial down my equity allocation anyway.
Maybe by then it will shine again and I'll end up sticking to it.
BRUSX risk/return metrics across various time frames ...
Second there will be a time to buy small cap value. At that time we can decide whether we want to but BRSIX or some other small cap value fund. I don't need to believe in any "story" at Bridgeway. It is always when you buy before what you buy.
I don't need to mention the pay structure at Bridgeway or the amount of charitable work he does I suppose. Any one wanting to buy a Bridgeway fund should be aware of these things.