Dear friends,
We'll be posting the site update in the next ten minutes, just fyi.
I think it's a fairly cool, fairly rich collection of stuff including a review of RiverNorth Dynamic Buy-Write. I still can't quite explain exactly what the manager does, even after two hours of conversation. I am, however, pretty intrigued.
Beyond that, an Artisan profile, a poke at Fido, a review of November conference call, a preview of our December one and teasers for January, February, and March. Had I mentioned cool pictures?
Hope you enjoy!
David
Comments
Very much enjoy December post. Rich with content.
PIMCO is so utterly impressive. Funny though how Real Retirement or Retirement Target funds never seem to inspire much.
Glad to see note about Redleaf's Whitebox. If it helps, Schwab offers institutional customers (eg., 401k) no load entry, with lowest fee, $2500 basic, or $1000 IRA minimums.
Glad too to see note about interesting Bretton Fund.
Will look forward to discussion with Andrew Foster of SeaFarer, as well as with Matt Moran and Dan Johnson of ASTON River Road.
Hey, in addition to looking at long-short alternatives, you might look into risk-parity approach, which Aness' shop AQR seems to be executing quite well with AQRIX, for example. I like how they seek multiple markets, daily, based on pre-defined volatility level.
Not sure I like idea of sister sites, but I'm getting old. Are you sure? Seems we are just now starting to achieve critical mass. Perhaps we could bulk-up a bit, grow our AUM, before expanding...
In any case, thanks again for doing what you do and all the best during the holiday season.
PS. I'm heavy RNSIX, which is proxy to being heavy Gundlach. Let's trust that if he can forecast the impending instability in traditional fixed income holdings, he can manage us through it.
The newsletter link to the River Road conference call is broken.
I'd like to attend the call. I've spent a while with Moran, and it is an intriguing story. They have obviously thought long and hard about this corner of the business and seem committed to learning from everybody they can find that's tried this or related approaches. They seem appropriately focused on both the risk and reward sides of the problem. I'd like to see more track record of the long managers in the firm - and that's part of the conundrum of new funds!
Gundlach says, “I don’t believe you’re going to get some sort of an early warning. You should be moving now.”
“We’ve largely given up on traditional fixed income,” Inker says, including government and corporate debt in the same condemnation. They don’t have any great alternatives (high quality US stocks are about the best option), but would prefer to keep billions in cash to the alternatives.
I don’t know whether you should wait. But I do believe that you should acquaint yourself with those who didn’t.
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At last report Scout Unconstrained Bond Fund (SUBFX) was over half in cash.
http://www.scoutfunds.com/stellent/groups/public/documents/web_content/029258.pdf
It is unsettling that successful managers with strong track records of navigating modern credit markets perceive and seek to avoid excessive risks that aren't being appropriately weighted by most including me.
Adhering to the quaint allocation rule of thumb age-related stocks/bonds with the fixed income allocation bearing at least some relationship to age...where exactly does one allocate the majority of assets if _not_ fixed income. Into the guaranteed inflation-adjusted loss in cash/cash equivalents or, insult to injury, have notable bond fund managers hold the cash for you at a 1% fee.
What continues to amaze in these central bank managed/engineered credit markets is the shocking amount of interest in none.
The link is fixed. I'm sorry for the goof.
Take care of you and yours,
Catch
That link is fixed now, too. I'm so sorry.
However, recently incremental monies went to ARTHX. Yet, by largest positions are in ARTKX and FMIJX.