Well worth spending an hour to listen to the podcast or skim the transcript. (This longtime PRWCX holder remains very pleased and comfortable with Giroux's investing philosophies & performance.)
David Giroux: 'What Are the Market Inefficiencies We Can Exploit?'
A two-time Morningstar Fund Manager of the Year winner on the benefits of concentration, the attractions of utilities and BB bonds, and his team's focus on "return on time spent."https://www.morningstar.com/podcasts/the-long-view/95
VWIAX is one of the best risk/reward conservative allocation funds in the last 5-10-20 years.
PIMIX is one of the best Multi sector bond funds 2008-2018.
So, when they tell you can't get FREE LUNCH, I have eaten free lunch for over 20 years.
Defining free lunch:
when you get better performance at similar SD.
when you get similar performance at lower SD.
And the best is...when you get better performance at lower SD.
Example for the third choice...PV(link) PRWCX vs SPY since 2000. Sharpe+Sortino are also good indicators.
Hi Mike - unfortunately I don't have the cycles right now to offer a detailed summary, but the transcript is fairly easy to skim. I do remember he favors utilities as a capital appreciation play right now, though. (I hold several, so this was somewhat confirmation bias to me)
Asset Class Net Short Long Cat. Index
U.S. Equity 64.65 0.27 64.92 47.07 34.65
Non-U.S. Equity 2.37 0.00 2.37 12.22 25.85
Fixed Income 19.30 0.00 19.30 36.49 38.26
Other -0.88 0.88 0.00 1.99 1.04
Cash 12.36 0.00 12.36 5.92 0.00
Not Classified 2.20 0.00 2.20 0.85 0.20
Fund as of Dec 31, 2020 | Category: Allocation--50% to 70% Equity as of Dec 31, 2020 | Index: Morningstar Mod Tgt Risk TR USD as of Jan 31, 2021 | Source: Holdings-based calculations.
....Well, that came out looking like a complete snafu. Screenshots need to be made simpler for those like me.
Stay Safe, Derf
On Duration Risk: On Holdings: TRP's Floating Rate Fund = PRFRX
GARP-y Stocks = Growth At Reasonable Price
-13% of the S&P 500 (according to Giroux)
But then I realized that I’ve never heard of equity duration risk. What is it? It turns out it’s quite complicated: https://www.ipe.com/equity-duration-how-viable/17520.article
This interview is really educational and the posts by bee too.
David's info would classify this as a market neutral fund which it certainly isn't. Per Schwab, the portfolio has about 1% short in equity and other, which I'm guessing is typical of any fund. It is fairly concentrated in that it's top 10 holdings make up about 57% of assets (assets = bonds and equity), 31 % of that being in equity. But to me that is not outrageous.
I don't really know where puts and sell call options list-out as long or short holdings, but could that be some of the confusion? Or could the short holdings be leveraged bond holdings. Maybe @msf might know.
people, at the link I posted it is number of positions, not dollars, 42L to 39S.
@Crash, go look for Stock Holdings (Long) and the same (Short)
and then below that click the Bond View tab, right next to the default Equity View, and sum the % Portfolio Weight column.
It is startling that so many post and rave about this fund month after month and no one has delved its composition --- can it be ? I do not own it and don't care and am not fully sure of the significance of any of this. msf delves prospectuses all the time and this is not even that, just what's available, publicly, on M*.
For the last year it seems about the same as (a hair worse than) 60-40 VONE-BIV, and a hair better than AOR. Including downside, on first glance.
May look at other and longer periods to see the value Giroux adds.
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