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BUFBX better 10 year record than FPACX with much higher yield
Somewhat more volatile at times.......but this fund has caught my attention as I am looking to increase my overall yeild and exposure to the energy sector. Does anyone invest in this fund, and if so, how much of a role does it play in your portfolio? I see that Buffalo's High Yield fund has done well, but always regarded them as more of a macro growth shop.
I have enough excitement in my life. In general, I avoid 'balanced' funds that hold high yield bonds as their risk mitigation tool against stocks. If they find them of value - then fine. I still prefer high quality bonds in my "standard" balanced funds. And I do not consider funds like FPACX as standard balanced funds. It may have done slightly better over these last ten years because high yield had done well. I would still place my money on FPACX - longer term. These last ten years have been everything but normal.
Have a look at JPVTX. This has become my core fund in my Roth and rollover IRA.
I've had my eye on BUFBX for awhile now but haven't yet pulled the trigger. The bond content is primarily AAA and AA and its 1 yr 3 yr 5 yr and 10 yr records have been outstanding. JPVTX, on the other hand, has bond content that is 55% BBB and below. JPVTX does not yet have a 3 year record and only has about $50 million in assets so I would hesitate to consider it as a core fund yet.
From everything that i've found I cannot find anything other than high yield ( junk bonds ) inside BUFBX. Morningstar has "Not Rated". I must say that JPVTX is flexible in their allocation.
"During the quarter, the Fund started positions in six new equities and seven new fixed income names. We had two bonds called during the period, ending the quarter with 51% equity holdings and 34% fixed income, the majority of which are high yield bonds. The cash position remains elevated due to a large inflow at the end of the quarter as well as our desire to have “dry powder” for new investment opportunities in the months ahead." http://www.buffalofunds.com/media/pdfs/BUFBX_Commentary.pdf
Not terribly fond of Janus, but the Perkins team is one bright spot at that company, and the bond side of JPVTX has, I believe, done well with Janus Balanced. I agree that it does not have a record (and again, not a real fan of Janus), but it (I think) has potential. Not too familiar with the Buffalo funds (BUFBX may be great), but I think FPA Crescent is an unusual fund in the category and I don't think it's an apples-to-apples comparison. I'd want any fixed income or hybrid offering to be extremely flexible.
Reply to @perpetual_Bull: After looking at it more closely with the help of the quote you provided, high yield bonds appears to be the bulk of their bond content. Thanks for straightening me out on this.
Bloomberg Classifies it in their Flexible Portfolio Fund list up against:
PAUDX - smooth ride...singles and doubles... PRPFX - under performing the group for 2012...might be cheap if it regains its mojo RPSIX - Less volatile...hits singles all day long MFCFX - Nice bounce from 2009...one of the most volatile of the group COTZX - Interesting fund that Skeeter mentions...adjusts to the "heat" of the market BRUFX -Tough to buy...only mail orders excepted...awesome fund performance
full disclosure, i own bufbx and fpacx. the manager of bufbx has over 35 years of investment experience. he also owns the advisor to the fund. i dont think he is greedy like fpacx in gathering assets for the fund. im sorry to hear the word is getting out about bufbx because asset bloat will hurt the fund. i keep thinking about dumping fpacx because of its bloat. it holds about 35% of its assets in cash which does not seem to protect it on down market days. because past performance does not predict future performance, i only allocate 5% to each fund i own. i own 20 funds. i only buy balanced funds, world allocation funds, and risk parity funds. please note that in 2008 bufbx lost 29.47% while the average moderate allocation fund only lost 22.19%.
I think it is funny how managers who tout their flexible appraoch and ability to jump on great investment opportunities and out of bad ones continue to let their funds grow and grow and grow......FPACX, FAIRX, YACKX (I know it is large cap focused, but still), RLPYX, FLPSX, FMAGX....just to name a few
Comments
Have a look at JPVTX. This has become my core fund in my Roth and rollover IRA.
"During the quarter, the Fund started positions in six new equities and seven new fixed income names. We had two bonds called during the period, ending the quarter with 51% equity holdings and 34% fixed income, the majority of which are high yield bonds. The cash position remains elevated due to a large inflow at the end of the quarter as well as our desire to have “dry powder” for new investment opportunities in the months ahead."
http://www.buffalofunds.com/media/pdfs/BUFBX_Commentary.pdf
http://www.fundmojo.com/mutualfund/fund_report/mutualfund/BUFBX
Bloomberg Classifies it in their Flexible Portfolio Fund list up against:
PAUDX - smooth ride...singles and doubles...
PRPFX - under performing the group for 2012...might be cheap if it regains its mojo
RPSIX - Less volatile...hits singles all day long
MFCFX - Nice bounce from 2009...one of the most volatile of the group
COTZX - Interesting fund that Skeeter mentions...adjusts to the "heat" of the market
BRUFX -Tough to buy...only mail orders excepted...awesome fund performance
10 yr Comparison chart:
http://screencast.com/t/4BoAYELqsKN
Others:
BERIX
VWINX
DODBX
VWELX
TWBIX
USBLX