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Anyone Seeing Value in Poorly Performing Funds or Sectors

beebee
edited July 2012 in Fund Discussions
I try to dollar cost average into poorly performing funds that I hold long term...I reallocate dollars by first taking some profits from the out performing funds/sectors I hold.

I am recently taking 5-10% profits from funds:
PRHSX and VHT (Health Care)
CSRSX and VNQ (Real Estate)

Anyone reallocating into poorly performing funds / sectors such as International, Precious Metals, Commodities, Natural Resources/Energy, India, China and maybe even Financials?

When I don't see good choices I usually hold these profits in an income fund like PONDX, RPSIX, VFIIX (my "aggressive" cash position).

Comments

  • claimui
    edited July 2012
    Financials are up this year almost as much REITS. Not sure about China but my MSMLX is also pretty good for the year. I have lightened up on all of my equity positions, but I'm out of FAIRX/FAAFX (big financials bet) completely now.

    I recently sold out of commodities (PCRIX). I personally think they have a lot more room to go up than down, but I didn't want to be in this asset class anymore. Took a big loss and just writing it off as an expensive lesson and some tax savings.
  • tgeno
    When I put MSMLX against my other major stock fund holdings (MAPIX, MAPTX, APPLX) and look at at relative performance over the past year using the Perfchart feature at Stockcharts.com, MSMLX is my worst relative performer over the past 12 months. Comparing the same funds performance since the beginning of 2012, MSMLX is one of my top 2 performers, bested a little by MAPIX. An answer to bee's question would depend on what time period I would use to define poorly performing.
  • scott
    Looking at adding to energy, nat resources, EM, commodities. I'm rather interested in AQR Defensive EM Equity, which is supposed to be coming out this month. Or, maybe going with the DEM etf again.
  • InvestorInvestor
    edited July 2012
    You can check the status of sectors from Lipper reports (thanks Ted!)

    http://www.mutualfundobserver.com/discuss/index.php?p=/discussion/3463/lipper-performance-report-as-of-6512-yardsticks-indexes-as-of-6612/p1

    I think Natural Resources, Commodities, Precious Metals are lagging YTD but Precious Metals and Energy has been swinging up powerfully recently.

    From regions Europe and Latin America are lagging.
  • beebee
    Reply to @Investor:

    Thanks investor...I missed this Ted link. Very helpful.
  • MikeMMikeM
    I keep track on my watch list where funds are in comparison to their recent highs.

    Here are a few funds that are still way below recent highs, International, EM's, NR and minor funds for the most part. Notice MAPIX and MACSX have not fallen off their highs like the other Asian funds. A much nicer ride. This data was last updated towards the end of June.

    PRMSX -22%
    ODVYX -17
    PRLAX -38
    PRASX -27
    MACSX -8
    MAPIX -8
    MINDX -35
    MSMLX -31
    UMBWX -20
    HIINX -20
    VGTSX -24

    PRNEX -34
    USAGX -46
    TGLDX -35

    In comparison, US equities have done well.
    VFINX -6
    NAESX -9


  • beebee
    edited July 2012
    Reply to @MikeM:

    Hi MikeM,

    As an added bit of data to your tracking the percentage "off their high"...I create a spread sheet that provides information about my funds that are moving "off their lows". This helps me further decide if there is some persistent upward momentum to jump on board with additional dollars. Doing this incrementally can be rewarding though a falling knife does bounce up before heading further down the stairs.

    Also, your list points out some important manager strategies. USAGX trails TGLDX by 9% which I attribute to TGLDX manager decision to hold some physical metal while USAGX's manager holds only the mining companies.

    Could you explain the differences between MAPIX and MACSX...they seems more similar than any other Matthews offering? Is there a reason you own both instead of just one?

    Ultimately my goal is to select funds or maintain a portfolio that buffer downside risk while maintaining upside potential.
  • MikeMMikeM
    Reply to @bee: HI Bee. I own MACSX, not MAPIX. These are just funds on my watch list though I do own a few of them.

    MAPIX is a stock fund holding large dividened stocks. MACSX, in addition to stocks holds convertibles and some bonds. It's meant to be a less variable fund, but not sure that has been the case.
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