Moerus (From Dec. Issue) Did my query just get lost in the shuffle?

Crash

It happens...
RE-POST: This was of particular interest to me: Moerus. http://moerusfunds.com/fund-information/
Years ago, I'd held Amit Wadhwaney's Int'l Value fund at Third Avenue, but dumped it when results fell down a slope for too long to keep me happy. I guess it took a couple of years of bad performance to chase me out of TAVIX. ... Should I look forward to investing in MOWNX?
Concentrated portfolio, just 30 holdings, plus a short or two, and holding LOTS of cash, which I can understand, because it's so young. Does the fund manager deserve to be trusted---again? : http://portfolios.morningstar.com/portfo/details?t=XNAS:MOWNX&culture=en-US&region=usa
+6.9% in its first 6 months.

JohnChisum

Only my opinion, I wouldn't be eager to invest in it. There are plenty of other funds.

Fool me once........

Crash

Thanks!

Dennis Baran

Hi Crash. I noted your earlier concern about Moerus before this repost and wished to get back to you.

If you've read what the PM has said about the fund, then you know that it remains a deep value product and aims to apply the 20-year process that he used previously at Third Avenue in an LP and mutual fund to his new fund on a global basis. The LP invested in smaller companies with an EM focus, the fund in larger companies in developed markets. He has also explained his investment process in detail in recent interviews, a process which the continuing development of his website reflects.

Personally, I'm happy that he has launched his own fund and is off to a promising start. However, although constituted differently, it remains a deep value fund, and that can be very difficult for many investors to stomach as a core holding and maybe even as a secondary one for the long term.

In your case, you have what you know about the fund, his previous one, and your own experience to go by.

If only we had a crystal ball ....

hank

Hi Crash - Glad you brought this thread back to life. Lack of earlier responses may relate to some ambiguity among readers about just what your investment approach is. I'm curious how many years before you begin distributions and whether that will affect your fund selection? I'm also a bit confused from past posts about just what you already own. At times you've seemed to be very heavy into real estate funds along with EM equities and bonds. Recently you mentioned some investments in PRLAX (a fund I think more appropriate for timing and speculation rather than long term commitment).

At one point a few years ago I thought you had moved all your invested assets to T. Rowe Price (great manager). And I know you like PRWCX. This last one has gotten very conservative recently and this year seriously lags a couple funds it is often compared to: DODBX and OAKBX. Manager is likely dealing with a huge inflow of $$ both before and after the soft close. But over 5 years it still sports a great risk adjusted return. It would be really interesting to hear what type of allocation model you adhere to and how you are positioned by asset class (as opposed to a list of individual funds.)

RE MOWNX (Investor Class): It has 1.65% ER after waiviers. That's very high for a value fund - even taking into consideration its international component. Concentrated funds tend to live and die by the sword - meaning they can rocket to fantastic heights or fall off steep cliffs. (Sometimes they accomplish both feats in relatively short order.) Not saying not to invest in one - just beware.

Crash

You guys are great to get back to me on this. Allocation model I use? I'm where I want to be: Biggest chunk in domestic stuff. (44%.) 39% bonds of all sorts. 8% foreign equity. It would seriously drive me nuts to very strictly adhere to a hypothetical model. This very discussion board has uncovered really fabulous destinations for my money, over the years.
I have nothing in PRLAX. I mentioned it a little while ago, is all. Years ago, I was in TRAMX, too. I got out of it with a good profit, there.

My two portfolio anchors are PRWCX and MAPOX. I do note that PRWCX has been lagging similar funds since the post-election break-out. Yes, the "lion's share" of my portf. is in TRP, but not all. I am aware of DODBX. The risk/reward ratings keep me away--- not to mention that I'm quite happy with the two "anchors" I already own. (I don't want 3 anchors.) DODBX carries a lot of volatility, along with its splendid results, though that fund wasn't always so volatile. (As a favor, for many years, I've personally baby-sat a portfolio for a couple who were eager to let me make some choices and just DO it for them, because they are terrified of dealing with the whole thing. Their biggest holdings are DODBX and PRWCX. She has a rollover Trad. IRA, he is in a 403b.)

My domestic bonds are in those two balanced funds I own, plus PRSNX, a TRP global bond fund, and uncle Jeffrey's DLFNX.... But DLFNX by itself is one of my smallest holdings. International bonds are in PRSNX and EM bonds in PREMX---which I've adjusted to be quite a bit smaller slice than years ago, but I'm still riding it. PREMX is today 14.21% of portfolio. I can afford to wait to take income, though retired. I've not started SS yet. I'm re-investing EVERYTHING. And more than just myself, I'm investing for heirs, too. I have "The Life of Reilly." My wife works. She's in a 403b, but doesn't want to really invest enough to make it grow substantially. (wifey = 40s.)

More: 14% is small cap. 23% mid-cap. 62% large-cap. ...I'm growing a tiny position in PNM. Letting COP make a bit of money for me, finally. The COP slice is so small, it's like an afterthought. Letting it ride, and glad I didn't pull the plug and lock-in earlier losses. Real Estate: there's just one dedicated fund: TRGRX. It's 5.52% of portfolio. But M* tells me (X-Ray) that I'm up to 11.3% overall.

Thanks for asking.

hank

Thanks Crash. I understand your methods better now. I can see where real estate, when one does an X-Ray, would appear much higher than if you just look at the amount held through a dedicated fund. You have cleared that up.

Your anchor approach is interesting. Much different from my 80% core position (about a dozen funds) - which, in a sense, is my anchor. Both approaches make sense to me. Yours may be easier to grapple.

And agree fully with your comments re DODBX.

Anchors away. Thanks again.