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Not sure how I missed this fund. I own all the Intrepid funds in my Scottrade account. I would have bought it at inception. On the other hand, I could sell SCMFX and SEEDX and still buy it. If nothing else it will signal market top
They say that it is targeted for advisors or those that will manage the cash position themselves. A fully invested portfolio, but cash is limited to 10%
What is being targeted is investors, not asset allocation. To paraphrase what 00BY wrote, the fund is designed for (targeted to) investors who want a fully invested, volatile (concentrated) fund.
There is nothing in the prospectus (or SAI) saying that the cash will be under 10%. What the prospectus does say is that all the other funds in the family are free to invest without limit in cash. Well, actually it says "each Fund, other than the Intrepid Select Fund, may hold in excess of 25% of its assets in cash ... at any time or for an extended time."
What's magical about 25%? I can't say I don't have a clue, but the clue that I have is pretty useless. Under Principal Risks of Investing In Each Fund (prospectus), "Cash Position Risk" is identified as a risk for all the funds except Intrepid Select. Perhaps if a fund has less than 25% in cash for an extended time, cash drag is not a principal risk? Or maybe this section is what implies Intrepid Select should normally stay under 10%?
Like most funds, all of the funds here (including Intrepid Select) reserve the right to go to cash. "In order to respond to adverse market, economic, political or other conditions, the Fund may assume a temporary defensive position that is inconsistent with its investment objective and ... strategies and invest, without limitation, in cash ..."
@MFO Members: Very impressive short-term performance results for a fund only a little over a year old. However, it has a very highly concentrated portfolio, just 19 stock, and is a damm the torpedos, full speed ahead long-term capital appreciation fund. Before I can claim it a winner, winner, chicken dinner, I'd like to see a couple of more years of performance results. Regards, Ted
Comments
True stories. I have messed up peoples portfolios just buying 1 share of stock they own. I have excellent track record doing that.
There is nothing in the prospectus (or SAI) saying that the cash will be under 10%. What the prospectus does say is that all the other funds in the family are free to invest without limit in cash. Well, actually it says "each Fund, other than the Intrepid Select Fund, may hold in excess of 25% of its assets in cash ... at any time or for an extended time."
What's magical about 25%? I can't say I don't have a clue, but the clue that I have is pretty useless. Under Principal Risks of Investing In Each Fund (prospectus), "Cash Position Risk" is identified as a risk for all the funds except Intrepid Select. Perhaps if a fund has less than 25% in cash for an extended time, cash drag is not a principal risk? Or maybe this section is what implies Intrepid Select should normally stay under 10%?
Like most funds, all of the funds here (including Intrepid Select) reserve the right to go to cash. "In order to respond to adverse market, economic, political or other conditions, the Fund may assume a temporary defensive position that is inconsistent with its investment objective and ... strategies and invest, without limitation, in cash ..."
That's where the wiggle room comes from.
Regards,
Ted