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Me thinks perhaps the market forces the Fed unleashed in March 2020 will continue to play out in 2021 as vaccines get distributed. With that in mind, a couple of "exotic" funds were added to the fund portfolio.
Bond Pot: Added SVARX. Sold PFOAX. Pot includes PTIAX, PONAX, RCTIX, SVARX, IOFIX. IOFIX will probably be eliminated as it continues to recover in 2021 (replace with GIBLX or ?).
Mixed I Pot: Added GBLMX. Sold HBLAX. Pot includes VWINX, GBLMX, DHHIX, PFANX, TRECX.
I've got some PONAX but expenses keep rising and the fund seems to be struggling since the management changes. I have LBNDX on my radard to replace my PONAX. That said, both LBNDX anda GIBLX (better longer term) have really high turnover rates.
Agee. Trimmed some positions with large gain. Time to let cash to build up. Pandemic is far from over.
Few opportunities I like beside cash. The value stocks have been overlooked and the valuation is reasonable. The market started to broaden out by end of 2020. YACKX holds high quality stocks while QRSVX holds smaller cap stocks (plus a large cash position).
David has a detail review on HGGIX and the holdings are uniquely different from most global funds, a good approach to diversify both domestic and oversea stocks.
It makes sense to be cautious when high equity valuations are considered. I rebalanced my portfolio in late 2020 / early 2021 to lessen risk. The current conditions don't necessarily preclude the "U.S. Market" from performing well this year. The state of the pandemic will be a major factor. I guess we'll have to see how it goes...
I keep adding to TMSRX, HMEAX and FIKFX. That's the conservative plan for 2021. Mr. Market is more than nuts. The inmates have been running the asylum.
Yes, it is indeed an expensive moment to invest. Can't get past that fact. It's always hanging there, behind us, in the background. For myself, I'm glad I already did the work of streamlining and consolidating my portfolio, preparing for retirement. What I hold now, I hold in bigger amounts than two years ago. So, all of them are high-conviction bets. I've reduced foreign equity to 9-10%. If I decide to add to the foreign stuff, it will be in PRGSX. That's apart from a segregated few thousand dollars in an account dedicated to my wife's interests. HGGIX.
@ Sven : From above post you mentioned a large cash horde by QRSVX. " YACKX holds high quality stocks while QRSVX holds smaller cap stocks (plus a large cash position). Is this a result of merger with FPA ? Just Wondering, Derf
Yes. FPA and Queens Road merged several years ago. Steve Scruggs has been running the small cap fund since 2002. While value funds have been out of favor versus growth, this small cap value fund still managed to gain a modest 13%.
This is one way to diversified away from the FANNG stocks.
Hopefully, FPA Capital and Queens Road Small Cap Value will merge finally provided they receive enough shareholder votes ratifying the merger. The shareholder meeting, adjourned several times for not receiving enough approval votes, is tomorrow.
Maybe Scruggs is holding cash looking for an opportunity where small caps pull back so he can pull the trigger to make some purchases after the long run up? Maybe today is the day?
I was stalking some *very* low-priced puts (like single-digit strikes) as a black-swan type of thing for when the music stops, but even there, the premia exploded. Not sure I'd be willing to touch it with even 'fun' money at this point.
.........Well I had been thinking that we were overdue for about a weeks worth of such daily pullbacks. Probably not in the cards, though. Too much stimulus and bullish sentiment (though that used to be a bearish indicator).
@rforno I love that move on SCVX. For the same reasons I think PLTR will be fine moving forward. It’s a category/sector that keeps increasing in importance. Cyber security fragmented.
Since that's my industry, I'm very familiar with things. Most of these other SPACs are just saying "we'll buy something in [consumer discresionary/fintech/etc]" which is even more vague than 'cybersecurity' in my book. So, we'll see!
@rforno I love that move on SCVX. For the same reasons I think PLTR will be fine moving forward. It’s a category/sector that keeps increasing in importance. Cyber security fragmented.
Apparently the slide is not done yet and the Dow future for tomorrow is in a downward trend. Earning report on Apple, Facebook and Tessa are good while Boeing is still behind.
"... Includes compensation from the Funds, FPA Capital Fund, Inc., (reorganized into Queens Road Small Cap effective February 1, 2021)..."
Checked my FPA Capital account this morning...my shares were switched to FPA Queens Road Small Cap Instl. shares as of this morning; shares were adjusted for the lower NAV of the FPA Queens Road Small Cap Instl NAV price than the FPA Capital NAV.
Comments
Stay Safe, Derf
Few opportunities I like beside cash. The value stocks have been overlooked and the valuation is reasonable. The market started to broaden out by end of 2020. YACKX holds high quality stocks while QRSVX holds smaller cap stocks (plus a large cash position).
David has a detail review on HGGIX and the holdings are uniquely different from most global funds, a good approach to diversify both domestic and oversea stocks.
I rebalanced my portfolio in late 2020 / early 2021 to lessen risk.
The current conditions don't necessarily preclude the "U.S. Market" from performing well this year.
The state of the pandemic will be a major factor.
I guess we'll have to see how it goes...
https://npr.org/sections/coronavirus-live-updates/2021/01/19/958449203/400-lights-for-400-000-dead-to-illuminate-lincoln-memorial-reflecting-pool
Is this a result of merger with FPA ?
Just Wondering, Derf
This is one way to diversified away from the FANNG stocks.
Stay Safe, Derf
Maybe Scruggs is holding cash looking for an opportunity where small caps pull back so he can pull the trigger to make some purchases after the long run up? Maybe today is the day?
So it's a spec in a spac. /ducks
I was stalking some *very* low-priced puts (like single-digit strikes) as a black-swan type of thing for when the music stops, but even there, the premia exploded. Not sure I'd be willing to touch it with even 'fun' money at this point.
Since that's my industry, I'm very familiar with things. Most of these other SPACs are just saying "we'll buy something in [consumer discresionary/fintech/etc]" which is even more vague than 'cybersecurity' in my book. So, we'll see!
It appears that enough FPA shareholders approved the merger. Found this filing by Bragg Capital this morning:
https://www.sec.gov/Archives/edgar/data/1170611/000110465921009595/a21-4366_1497.htm
Here is footnote concerning the merger:
"... Includes compensation from the Funds, FPA Capital Fund, Inc., (reorganized into Queens Road Small Cap effective February 1, 2021)..."
Checked my FPA Capital account this morning...my shares were switched to FPA Queens Road Small Cap Instl. shares as of this morning; shares were adjusted for the lower NAV of the FPA Queens Road Small Cap Instl NAV price than the FPA Capital NAV.
Just found these news releases:
https://fpa.com/docs/default-source/FPA-News-Documents/fpa-qr-capital-merger-press-release-final.pdf?sfvrsn=2
https://finance.yahoo.com/news/fpa-announces-completion-fpa-capital-143000983.html