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M*: Why Does Artisan Have Three Separate Global-Stock Funds (ARTGX, ARTHX, ARTRX)?
Reply to @Sven: I've got their ARTKX fund so I did not invest in ARTGX for now. But, I've invested some in ARTHX. It would be a growthy complement ARTGX. These two are like ARTQX and ARTMX except they are global.
This is a great question. A lot of fund companies do this, and they will tell you all the reasons. For the most part, it's done to allow a strategy that cannot be done in an existing fund, the limitations put on management by the fund prospectus. Usually it involves a specific strategy that either was not possible or had not been considered by management before. Whether the new funds are truly different is always open for debate. Of course, the fund companies will tell you that the new funds are absolutely different than the existing ones. But it can get carried to extreme, like Fidelity and a number of other behemoths that have many, many domestic large cap funds, all of which are so different that they each deserve consideration. Seriously, the trend now is to have a fund that gives managers a free wheel to invest in anything, anywhere. M* calls this world allocation. I call it jumping on the bandwagon. The same thing has happened in bonds, where fund companies have all jumped on the "unconstrained" bond fund parade. Most will be average at best, but in the meantime, the fund companies will have garnered a lot of new money that would otherwise gone somewhere else. Artisan has historically done a good job of being cautious about adding funds, as well as closing funds that get too hot. We have used ARTMX since it first started, and ARTQX pretty much from the beginning. ARTVX has done a great job, too. And just when many people gave up on Mark Yockey, ARTIX has proven his ability yet again. No question, Artisan is a great all-around shop. But do these newer funds split hairs? Probably.
I maintain what I said when ARTHX opened. It's sole purpose was to deflect attention from poor relative performance of ARTIX. Just like OAKWX was to do likewise for OAKLX.
Now, managers of Artisan are nicely split into two camps - Growth and Value. ARTGX and ARTRX play to these two camps. I would hardly get worried regarding excessive funditis at Artisan. I don't need M* to tell me they are buying different kinds of stocks. This is not the same as Janus buying and selling stocks to funds within the same complex with excessive overlap as in the 90s; something I have expressed worry on regarding Royce in the past and Wasatch recently.
However, again, ARTHX I think was unnecessary and I have already opined why I think it exists.
Reply to @VintageFreak: I believe Berry Dargan along with Mark Yokey is likely do better with small asset base of ARTHX. ARTIX had a poor 2010 but otherwise the record has been pretty good.
I respect the managers of ARTRX given their success with ARTMX. The fund is 5* but like the article said it has only recently changed its mandate to global (May 2012). ARTRX invests in deeper growth stock. I personally think this fund will be higher beta. ARTHX is likely to have better downside protection than ARTRX.
Ultimately, we need to wait a little longer until ARTRX builds more record as global fund.
Comments
Now, managers of Artisan are nicely split into two camps - Growth and Value. ARTGX and ARTRX play to these two camps. I would hardly get worried regarding excessive funditis at Artisan. I don't need M* to tell me they are buying different kinds of stocks. This is not the same as Janus buying and selling stocks to funds within the same complex with excessive overlap as in the 90s; something I have expressed worry on regarding Royce in the past and Wasatch recently.
However, again, ARTHX I think was unnecessary and I have already opined why I think it exists.
I respect the managers of ARTRX given their success with ARTMX. The fund is 5* but like the article said it has only recently changed its mandate to global (May 2012). ARTRX invests in deeper growth stock. I personally think this fund will be higher beta. ARTHX is likely to have better downside protection than ARTRX.
Ultimately, we need to wait a little longer until ARTRX builds more record as global fund.