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Geez that fund hasn't made the rounds since forever. Anyway I see nothing compelling in a garden variety LC Value fund that (according to M*) trails its category by 14% and the index by 26%. It holds nothing special and is heavily weighted toward the financials and healthcare sectors. What raises your interest?
Historically, I think it's been more defensive than the typical large-cap value fund, will hold cash and bonds and the manager is a long-term investor who buys and holds and invests heavily in his own fund. For a while he's held little to no bonds as I imagine he isn't finding value in them. The fund tends to lose less during declines and gain less during rallies. It's been a while though since I looked at this fund.
Geez that fund hasn't made the rounds since forever. Anyway I see nothing compelling in a garden variety LC Value fund that (according to M*) trails its category by 14% and the index by 26%. It holds nothing special and is heavily weighted toward the financials and healthcare sectors. What raises your interest?
I recently deliberated adding GATEX, but didn’t bite (went with more conservative fund). But GATEX’s a good fund - which I’ve owned in the past. Lost about 14% in ‘08. (For reference - PRWCX lost 27% that year.) Personally, I’d sacrifice a bit of ER or return for a fund with a longer track record.
Also came across CIHEX (Calimos Hedged Equity). Too dicey for my needs. Worth a look. JHQAX is arguably superior, but closed to new investors I believe.
AUXFX is a focus fund with 101 holdings (not so focused?) but with 40% in top 10 (that is focused). AUM at $277 million remains small for an old fund (mid-1999 inception; same manager, Jeff Auxier). M* Quote page shows persistent outflows (concern?). U/D CR is so-so 81/103, so doesn't shine in downside protection. Drawdown in 2020 was bit below category and benchmark index. M* auto-rating (Q-rating) is poor (Neutral). Mentions GARP (a term from old times) in Yahoo Profile (below). Boutique firm has only 1 fund but also runs private accounts. Ed Auxier is an analyst (son? relative?) - see team link below. It is no-load/NTF at Fido and Schwab.
"The fund invests primarily in a diversified portfolio of equity securities that the adviser believes offer growth opportunities at a reasonable price. The adviser will pursue an investment blend of equity securities of growth companies and value companies. Although the fund may invest in companies of any market capitalization, the adviser intends to focus its investments in the equity securities of medium to large U.S. companies (defined by the adviser as companies with market capitalizations above $1 billion at the time of investment)."
JHQAX is arguably superior [to CHIEX], but closed to new investors I believe.
JPMorgan expanded capacity by "cloning" the fund. But the clones (JHDAX and JHTAX) operate out of phase with the original, so they're not competing for the same securities. From M*'s writeup:
The newer funds follow the same approach of the original Hedged Equity strategy, however, instead of purchasing options on the last business day of the quarter, Hedged Equity Fund 2 purchases three-month options on the last business day in January, April, July, and October, and Fund 3 trades its options on the last business day of February, May, August, and November.
If you are looking for value funds that are more defensive I suggest you consider CDC which Lynn Bolin wrote about a few months back and also YACKX— excellent long term track record. CDC is the more defensive of the 2 and also has a great long term record.
@msf, Any thoughts on why JHDAX and JHTAX performance (TR) does not converge to JHQAX and with each other? Or we do not have enough data yet to draw definite conclusions? Thanks.
If you feel like gambling a bit, New York Life has a series of ETFs that claim (attempt) to track the returns of various types of hedge funds. All look interesting. But most have exhibited poor / lackluster performance. Two look promising: QED - which I’ve owned a few months, and QLS which has performed better, but is higher risk. Both rated by M* if one cares to check.
Agree with Mike that YAFFX is also good. A more concentrated version of YACKX. Similar performance. The other benefit is they both give you strong intl exposure
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Also came across CIHEX (Calimos Hedged Equity). Too dicey for my needs. Worth a look. JHQAX is arguably superior, but closed to new investors I believe.
AUXFX is a focus fund with 101 holdings (not so focused?) but with 40% in top 10 (that is focused). AUM at $277 million remains small for an old fund (mid-1999 inception; same manager, Jeff Auxier). M* Quote page shows persistent outflows (concern?). U/D CR is so-so 81/103, so doesn't shine in downside protection. Drawdown in 2020 was bit below category and benchmark index. M* auto-rating (Q-rating) is poor (Neutral). Mentions GARP (a term from old times) in Yahoo Profile (below). Boutique firm has only 1 fund but also runs private accounts. Ed Auxier is an analyst (son? relative?) - see team link below. It is no-load/NTF at Fido and Schwab.
"The fund invests primarily in a diversified portfolio of equity securities that the adviser believes offer growth opportunities at a reasonable price. The adviser will pursue an investment blend of equity securities of growth companies and value companies. Although the fund may invest in companies of any market capitalization, the adviser intends to focus its investments in the equity securities of medium to large U.S. companies (defined by the adviser as companies with market capitalizations above $1 billion at the time of investment)."
Team at website https://auxierasset.com/managed-accounts/team/