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And my thanks for bringing it to my attention the other day. I looked at it and bought immediately; which was, fortunately, BEFORE that surprising gain! I'm a believer in the SC rotation; so your mention was timely...
And my thanks for bringing it to my attention the other day. I looked at it and bought immediately; which was, fortunately, BEFORE that surprising gain! I'm a believer in the SC rotation; so your mention was timely...
That WAS a surprising move yesterday, but keep in mind that with its 30+ SD, these kinds of daily moves happen with this fund, well, pretty much daily. You don't get to a ~150% annual TR (2020) without 'em!
And my thanks for bringing it to my attention the other day. I looked at it and bought immediately; which was, fortunately, BEFORE that surprising gain! I'm a believer in the SC rotation; so your mention was timely...
That WAS a surprising move yesterday, but keep in mind that with its 30+ SD, these kinds of daily moves happen with this fund, well, pretty much daily. You don't get to a ~150% annual TR (2020) without 'em!
I've been holding ARKW and ARKG; believe me, I'm familiar with wild swings! 8^b
SCs are revving their engines yet again this AM pre-market. This hasbeenIS quite a ride! Not exactly sure why I believed both the SC and EM "stories" this time around but oh so glad I did.
Beating a dead horse here, but SCG MSSMX UP 2.99% on a sell-off day. For me, that does it: adding more to it tomorrow. Maybe another +150% year is coming?
MSSMX up 2-plus% today on a 2-plus% down day for broad indexes. STILLERS, THANK YOU FOR POINTING OUT THIS FUND (sorry to yell...I am just being emphatic! I know about Morgan Stanley and it’s fine selection of funds/managers (owning MGGPX, MIOPX, and the EM fund briefly), which are mostly large growth funds in their respective fund types...but had not looked at their small caps!
Im curious if any of the holdings are the same stocks that the Robinhood crew is chasing...Other small cap funds I track have been rallying this week because they do
On the short squeeze question, speaking generally to all readers/posters...
I would caution limiting one's concerns about this issue to just SCs and/or any specific fund, e.g., MSSMX. This is potentially a very large, diverse problem that could affect investors in many ways, yet TBD, and may be affecting some/sevral of your holdings unbeknownst to you right now. That said...
Most recent portfolio data, even on the MS site, is from 09/30/20. It does NOT appear any of the short squeeze companies*** are held by MSSMX, at least not in the top ~50%-60% of its holdings. Invite others to look for some as well - could have missed one.
***UPDATE: SFIX is on both the Fido holdings and Short Squeeze company lists below (as a 5.21% holding per Fido list) but not sure if it's a problem child short.
Also note:
(1) These are dated holdings lists and much could have changed in the 4th Qtr and/or Jan 2021. Unless there were significant changes, does NOT appear to be a problem. (If it is, it's currently a GOOD problem to have. Just sayin'.)
(2) Keep in mind this is Morgan Stanley we're talking about here. If anybody stands a chance of being on the right side of how these squeezes turn out, I like my chances teaming up with them.
(3) I am NOT recommending that any readers/posters BUY/HOLD this fund. If you are considering doing so, do so after your own DD and at your own risk/peril. Like all MFs, it does NOT come with a warning label and "Nobody rings a bell" when it's time to consider getting out. (Thanks Art Cashin!)
(4) If you do BUY it, note that Dramamine is not included with your purchase.
(5) Lastly, and FWIW, it is an (intended, at least) LT hold for me and like they say, I'm "Enjoy(ing) the ride!"
MSSGX is a spectacular fund, I own it as a small part of my portfolio. But I continue trying to understand the source of its incredible outperformance. I was watching performance of the companies at its top five positions according to its latest report of 09/30/2020. Two of them, OSTK and SFIX, are up 60% during the last month. Then I decided to see whether the recent hero GameStop (GME) is also there, and I found it way down the list at only 0.92% of portfolio weight. It looks inconsequential. But this was 4 months ago. According to M*, during the last 4 months GME was up about 3000%. What was 0.92% 4 months ago could easily grow to become about 20% of the MSSGX portfolio. I doubt that the managers would allow a single stock to grow that much, but a potential impact of GME could explain some part of performance of MSSGX.
Really crazy performance history of feast or famine. MSSMX has been the #1 ranked in its cat 3x including 2020 and this year, but in 2014-2016 threw up a string of 99-96-96.
On the shorts issue...keep in mind that MSSMX was UP 150% in 2020. The big squeeze problems seem to be a 2021 thing, with GME for example being a January spectacle. Also, it does not appear to use leverage, and if so, the big risk then would be downside protection when all heck breaks loose on any of the squeeze targets. If so, trusting MS to be all over that. Welcome further comments.
All that said, its closest domestic SCG peer (via Fido menu) is behind a whopping 20% YTD TR, UP a mere 13.5%.
There's something happening here What it is ain't exactly clear -Stills
There's something happening here What it is ain't exactly clear -Stills "For What It's Worth."
...But... What's it worth? Russell 2K today up like crazy. +2.53%. I've only 10% in small-caps. But I still like my allocation. Don't like the volatility anymore.
I'll try to make this one of the last regular posts on this but there seems to be some interest...
MSSMX, DOWN fractionally today, appears to have been adversely affected, perhaps by one of the squeezed stocks. In a rush right now but will look at it later. Its 12/31/20 holdings are here under "Composition" tab:
GME dropped 30.77% today and at 12/31/20 they owned .91%, probably higher % now after the crazy January - GME up over 1,000%. Hopefully they will sell out soon.
Yeah, noted that. VERY RELUCTANT though to even TRY to state the one(s) that are the culprits to date, and will be the culprits in the coming days/weeks/months, given the somewhat stale (albeit only a month) data on its holdings and their respective %'s.
EDIT: GME getting crushed again today. Likely adding one last sliver to MSSMX today to complete my intended allocation.
GME was DOWN a whopping 60% today BUT MSSMX was UP 2.05%.
So GME could have been part of the cause of yesterday's fractionally DOWN day. If it was though, it would seem likely then that GME was sold yesterday as MSSMX did not have the same price action today on an even steeper GME drop.
That's a WAG at best given the dated port holdings and that alone causing me to NOT take a deep dive under the hood. For me at least, it is what it is on this one.
I did tip off my allocation today so I am strapped in for at least a couple of months while planning to hold LT. Either way, expecting a WILD ride.
Elwood: It's 106 miles to Chicago, we've got a full tank of gas, half a pack of cigarettes, it's dark and we're wearing sunglasses.
Somebody has to pay the IRS if the gains are realized. Either the MF makes a massive distribution at year-end affecting the shareholders of record at that time, or the shareholder sells the fund resulting in a big short-term gain. Taxes are on my mind as my 1099s start arriving. Having a big spike in income in one year might be seen as a « high class problem, » but it can have an impact beyond the tax year in question. Short-term gains are taxed at the taxpayer’s highest rate, for one. Retirees on Medicare, in addition, who see their AGI rise suddenly will be subject to steep increases in Medicare premiums because of the one-year spike. If AGI reverts to a « normal » level it will be necessary to file a form explaining why there was a spike and requesting a return to the status quo ante. IOW, a PITA. I like a fund or stock that shoots up as well as anyone, but the resulting high can be followed by hangover. A grad student at MIT, earning $36K annually, was featured in the WSJ because of his $200K from a small investment in GME. I have to wonder how much of that windfall he’s going to keep.
Taxes. BIG problem for lots of investors, and as you've described for many MSSMX shareholders. Fortunate enough to have successfully executed a life-long investment strategy to still have 95% in tax-deferred a/c's post-Medicare age. Hold only a few munis outside the umbrella.
All that said, trusting there are far worse problems these days than paying taxes on out-sized gains.
It seems to be a quick generalization of why Morgan Stanley funds have had such terrific returns as of late. It also implies that they may just be lucky by selecting a few high flyers like Fastly and Stitch Fix and the writer opines that the long term performance is not as as consistent with MS funds. I always appreciate alternate views to mine. So I’ll continue to keep an eye on my MS funds but perhaps it wasn’t just sheer luck. Perhaps they are on a consistent long term path of identifying real winners. The performance in small caps, growth and International is something to marvel at.
Comments
hasbeenNot exactly sure why I believed both the SC and EM "stories" this time around but oh so glad I did.
MSSMX UP another 5.31% today. Time to look a little deeper under the hood of this freight train.
And...at what level do "finder's fees" apply? ;^)
VSCIX has a $5M minimum for all types of accounts. I own VSMAX with a slightly lower minimum.
That's what I was thinking, 401k or 403b.
For me, that does it: adding more to it tomorrow.
Maybe another +150% year is coming?
Increased my stake in it today by 50%. One more BUY to go to fill out the position. Seat belts not included.
Read it again slowly and try to understand it.
On the short squeeze question, speaking generally to all readers/posters...
I would caution limiting one's concerns about this issue to just SCs and/or any specific fund, e.g., MSSMX. This is potentially a very large, diverse problem that could affect investors in many ways, yet TBD, and may be affecting some/sevral of your holdings unbeknownst to you right now. That said...
Most recent portfolio data, even on the MS site, is from 09/30/20. It does NOT appear any of the short squeeze companies*** are held by MSSMX, at least not in the top ~50%-60% of its holdings. Invite others to look for some as well - could have missed one.
***UPDATE: SFIX is on both the Fido holdings and Short Squeeze company lists below (as a 5.21% holding per Fido list) but not sure if it's a problem child short.
Also note:
(1) These are dated holdings lists and much could have changed in the 4th Qtr and/or Jan 2021. Unless there were significant changes, does NOT appear to be a problem. (If it is, it's currently a GOOD problem to have. Just sayin'.)
(2) Keep in mind this is Morgan Stanley we're talking about here. If anybody stands a chance of being on the right side of how these squeezes turn out, I like my chances teaming up with them.
(3) I am NOT recommending that any readers/posters BUY/HOLD this fund. If you are considering doing so, do so after your own DD and at your own risk/peril. Like all MFs, it does NOT come with a warning label and "Nobody rings a bell" when it's time to consider getting out. (Thanks Art Cashin!)
(4) If you do BUY it, note that Dramamine is not included with your purchase.
(5) Lastly, and FWIW, it is an (intended, at least) LT hold for me and like they say, I'm "Enjoy(ing) the ride!"
https://www.morganstanley.com/im/en-us/registered-investment-advisor/product-and-performance/mutual-funds/us-equity/inception-portfolio.shareClass.I.html
https://fundresearch.fidelity.com/mutual-funds/composition/61744J614?type=o-NavBar
https://www.marketwatch.com/story/here-are-the-biggest-short-squeezes-in-the-stock-market-including-gamestop-and-amc-11611842270
@Graust I recall you helping me several times over the years. Happy to have reciprocated at least in part. Be sure to Buckle Up on this one.
On the shorts issue...keep in mind that MSSMX was UP 150% in 2020. The big squeeze problems seem to be a 2021 thing, with GME for example being a January spectacle. Also, it does not appear to use leverage, and if so, the big risk then would be downside protection when all heck breaks loose on any of the squeeze targets. If so, trusting MS to be all over that. Welcome further comments.
All that said, its closest domestic SCG peer (via Fido menu) is behind a whopping 20% YTD TR, UP a mere 13.5%.
There's something happening here
What it is ain't exactly clear
-Stills
What it is ain't exactly clear
-Stills
"For What It's Worth."
...But... What's it worth? Russell 2K today up like crazy. +2.53%. I've only 10% in small-caps. But I still like my allocation. Don't like the volatility anymore.
MSSMX, DOWN fractionally today, appears to have been adversely affected, perhaps by one of the squeezed stocks. In a rush right now but will look at it later. Its 12/31/20 holdings are here under "Composition" tab:
https://www.morganstanley.com/im/en-us/financial-advisor/product-and-performance/mutual-funds/us-equity/inception-portfolio.shareClass.A.html
EDIT: GME getting crushed again today. Likely adding one last sliver to MSSMX today to complete my intended allocation.
So GME could have been part of the cause of yesterday's fractionally DOWN day. If it was though, it would seem likely then that GME was sold yesterday as MSSMX did not have the same price action today on an even steeper GME drop.
That's a WAG at best given the dated port holdings and that alone causing me to NOT take a deep dive under the hood. For me at least, it is what it is on this one.
I did tip off my allocation today so I am strapped in for at least a couple of months while planning to hold LT. Either way, expecting a WILD ride.
Elwood: It's 106 miles to Chicago, we've got a full tank of gas, half a pack of cigarettes, it's dark and we're wearing sunglasses.
Jake: Hit it!
A little insight into those gains at MSSMX.... https://amp.ft.com/content/f8dd7dba-3ba3-4ed8-bf7f-dffadab6112d
Helps answer the question, "After being UP ~150% in 2020, what can you possibly do for an encore?"
All that said, trusting there are far worse problems these days than paying taxes on out-sized gains.
It seems to be a quick generalization of why Morgan Stanley funds have had such terrific returns as of late. It also implies that they may just be lucky by selecting a few high flyers like Fastly and Stitch Fix and the writer opines that the long term performance is not as as consistent with MS funds. I always appreciate alternate views to mine. So I’ll continue to keep an eye on my MS funds but perhaps it wasn’t just sheer luck. Perhaps they are on a consistent long term path of identifying real winners. The performance in small caps, growth and International is something to marvel at.