MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

GTSOX Glenmede Secured Options Help

glampig
edited September 2012 in Fund Discussions
I’ve been searching for a way to offer my wife some downside protection and smoother ride in a choppy market for her Roth IRA. Does anyone at MFO have any experience with GTSOX-Glenmede Secured Options Portfolio? It’s NL/NTF at Schwab and several other brokerages, lowish ER (.90), no 12-b-1, and reasonable buyin ($1k). It has performed well since inception (06/30/10). FundReveal has GTSOX near the top of their “Best Funds List” with ADR 23% v S&P 500 20% and Volatility 15% v S&P 500 20% plus an A Risk/Return ranking. The chart comparisons against long/short, market neutral, asset allocation, and other alternative funds look good at Morningstar. Here’s some more information in a pdf from Glenmede:

http://www.glenmede.com/pdf/SecuredOptionsFund.pdf

Opinions? Thanks in advance. Rick

Comments

  • kevindowkevindow
    GTSOX is in the Buy-Write space, and funds with longer track records include GATEX, BWV, and PBP. I would not rate any of these funds as adequately attractive for me to buy.

    Here is an old WSJ article which might interest you:

    http://online.wsj.com/article/SB124000226296630085.html

    Kevin
  • glampig
    kevindow, Thank you! This information is just what I was looking for. After looking at a Morningstar chart of a long/short fund I was considering (FMLSX) with GATEX and then comparing those two with an S&P500 fund (SWPPX), I’m not so sure an alternative fund is worthwhile. To have much effective downside protection impact, I imagine this space would need to be about 35% of the portfolio. Fundamentals’ Make More/Lose Less Model Portfolio Design from FundAlarm that has been linked to MFO by Mark took that approach. My wife’s Roth isn’t large enough to warrant that percentage. That’s why GTSOX looked so promising.
    Returning to GTSOX: Charting the newer (and not bear market tested) GTSOX against FMLSX, GATEX (load waived) and SWPPX, GTSOX performed so well that it might have stayed on the short list of alternative possibilities. Then I went back and re-read the WSJ piece you were gracious enough to locate and link. Brett Arends closed with this on April 29, 2009:

    “Any buy-write or covered-call fund is going to underperform the stock market during a bull market. But after what you've been through, do you really care?”

    Indeed. Maybe purchase a US Treasuries fund and GLD? That combination worked great 2008 – 1st Q 2009. For many, it's still working. Bill Bernstein likes short term treasuries a lot in this slot. Maybe. The search continues. Thanks again, Kevin. Rick
  • scott
    edited September 2012
    "Maybe purchase a US Treasuries fund and GLD? "

    Maybe Permanent Portfolio (PRPFX) - at least that owns Physical, rather than the fund owning ETFs. I also like AQR Risk Parity (AQRNX)

    As for GLD, I'd rather Sprott's PHYS (which is trading at about a 2.5% premium) or the gold and silver combo CEF.
Sign In or Register to comment.