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5/31: Number of Securities (Long) 16 Number of Securities (Short) 11 % of Net Assets (Long) 34.5 % of Net Assets (Short) 6.5 Gross Exposure (Long + Short) 41.0 Net Exposure (Long - Short) 28.0 Other 0.0 Net Cash Equivalents* 66.9
Sector MV% Information Technology 9 Industrials 9 Health Care 6 Consumer Discretionary 2 Energy 1 Financials 1 Consumer Staples -1
PMHIX is on my watch list and nothing more, as I see no reason to be an early buyer of this mutual fund. I prefer for a track record to develop as an OEF before buying, knowing that PIMCO is unlikely to ever close any mutual fund. And I don't have confidence that the track record of the predecessor "privately offered fund" means anything because of this qualifying statement from the prospectus:
"However, the privately offered fund was not registered as an investment company under the Investment Company Act of 1940 (the “1940 Act”), and the privately offered fund was not subject to certain investment limitations, diversification requirements, liquidity requirements, and other restrictions imposed by the 1940 Act and the Internal Revenue Code of 1986 which, if applicable,may have adversely affected its performance."
And since the prospectus erroneously backdates the performance of PMHIX back to the inception of the "privately offered fund" on 1/1/2003, M* of course reports this long performance record on their web site. Also, once again, M* understates the expense ratio of PMHIX as 1.40%, whereas the true expense ratio paid by investors is currently 1.80% per prospectus.
I continue to think that most investors do not need an allocation to dedicated L/S funds, as there are far more long-term losers than winners in this space which has an inherent high cost structure. In this space, the only funds that I would consider would be BPLSX and MFLDX, despite the very high expense ratios actually paid by investors of 3.40% and 2.47%, respectively. Although we own a foothold position in BPLSX, our only significant short exposure comes from our 11% position in PAUIX.
Reply to @kevindow: I do own a small position in the fund - I will say I did find it extremely fishy that morningstar put up the fund's prior private performance. No prior private performance should be put on M*.
Comments
PMHIX is on my watch list and nothing more, as I see no reason to be an early buyer of this mutual fund. I prefer for a track record to develop as an OEF before buying, knowing that PIMCO is unlikely to ever close any mutual fund. And I don't have confidence that the track record of the predecessor "privately offered fund" means anything because of this qualifying statement from the prospectus:
"However, the privately offered fund was not registered as an investment
company under the Investment Company Act of 1940 (the “1940 Act”), and the privately offered fund was not subject to certain investment limitations, diversification requirements, liquidity requirements, and other restrictions imposed by the 1940 Act and the Internal Revenue Code of 1986 which, if applicable,may have
adversely affected its performance."
And since the prospectus erroneously backdates the performance of PMHIX back to the inception of the "privately offered fund" on 1/1/2003, M* of course reports this long performance record on their web site. Also, once again, M* understates the expense ratio of PMHIX as 1.40%, whereas the true expense ratio paid by investors is currently 1.80% per prospectus.
I continue to think that most investors do not need an allocation to dedicated L/S funds, as there are far more long-term losers than winners in this space which has an inherent high cost structure. In this space, the only funds that I would consider would be BPLSX and MFLDX, despite the very high expense ratios actually paid by investors of 3.40% and 2.47%, respectively. Although we own a foothold position in BPLSX, our only significant short exposure comes from our 11% position in PAUIX.
Kevin
I also own MFLDX and PAUDX (d shares of PAUIX)