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  • hank November 2012
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Anomaly this Year-End: What to Prune?

BenWPBenWP
edited November 2012 in Fund Discussions
As I look at recent performance of some of my funds, which I do especially just prior to distribution season, I am struck by how great a variance there is between YTD performance and 1-year performance. Last December was a helluva good month for the markets, resulting in a big spread. Royce's RSEMX looks like a stinker YTD (+9.87%), but terrific for a year (+17.07%). Same is true for other of my candidates for the trash bin. (RSEMX is my last remaining tie to Royce, and I may be suing for divorce anyway.)

Wonder if others have noticed this performance difference and what it means to you.

Comments

  • hank
    Interesting - but wouldn't read too much into it. All my equity funds show the divergence but not as pronounced as your example. Price's Spectrum Growth (PRSGX), which is diversified broadly among their domestic funds and also holds 20-30% international, shows a spread of about 4.4% (19.3 vs 14.9). When rebalancing I like to take from the winners and add to the laggards - assuming, of course, they still warrant confidence. Sometimes, keeping similar amounts in "competing" funds can make the process easier. For example, I try to keep similar amounts in DODBX and PRHYX. - fwiw
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