FARIX, Fulcrum Diversified Absolute Fund...mentioned on the boards in the recent past...did Schwab send out several statements to shareholders of the fund with restated values of the fund on each statement? What if anything should one read into it? I have no idea what that is about but I was a shareholder of IQDAX when I received about a dozen similar statements with restated values from various backwards looking months and a few months later the fund closed and the manager was charged with some kind of malfeasance. NOT saying this is the case here meaning FAIRX, but do wonder what the reason for this is. Any explanations, why would they have to do this? Where is the governance?
Anyone care to comment on AKREX (-29% YTD) or TMSRX (-5.5% YTD) ? Seems to me they were "fan favorites", kind of crickets lately, anyone still holding? Talk amongst yourselves.
Anyone care to comment that Hussy, HSGFX is in fact AHEAD of PRWCX for the past 3 years now? What's that, oh go back more years, ok I get it, I hear you, fair point, but let's see what happens going forward when the CBs globally are not pumping in trillions of dollars and the fund managers need to navigate the markets and invest without the QE.
Got to like the 4.3 2YR CD Schwab, 4.4 3YR, 4.5 5YR...do I hear 5% 5 year? when that happens, I can hear a whooshing sound of folks over 60 bailing on the stonk market and locking in. Thoughts?
CDX IG spread is bigly....what does it mean? lotsa stress in credit markets, can't be good, or do we blast off in big tech names soon with squeeze or does it all go down the sheeeter soon?
Good Health and Good Luck to ALL
Baseball Fan
Comments
FLTDX in August, then again in September.
VCFAX, TRBUX in September
FARIX in September (your OP)
If tax implications of corrections are "small", they may be ignored, IMO (but what do I know?). Keep in mind that the corrected 1099 do go to the IRS.
https://www.mutualfundobserver.com/discuss/discussion/59922/schwab-issued-corrected-1099-in-august
Saw some Morgan Stanley 4.8% 10 year CDs at Fido today, though they are callable. Over 5% is soon to come.
"Anyone care to comment that Hussy, HSGFX is in fact AHEAD of PRWCX for the past 3 years now? What's that, oh go back more years, ok I get it, I hear you, fair point, but let's see what happens going forward when the CBs globally are not pumping in trillions of dollars and the fund managers need to navigate the markets and invest without the QE."
I don't personally own any of the mentioned funds.
When an investor owns actively-managed funds, they should expect periods of underperfomance.
It usually comes with the territory.
If an investor can't tolerate bouts of underperformace, perhaps they should utilize broad-based index funds instead to capture market returns?
Mr. Hussman anticipated market crashes associated with the dot-com bubble and the Global Financial Crisis.
He's been a perma-bear since the GFC and his funds' long-term performance
was terrible last time I checked (it's been a while).
Sure. I’ll comment. HSGFX is a bear market fund. It should surprise no one that the fund has soared in a year in which the S&P has fallen 25% in a mere 6 months and the NASDAQ more than 32% during the same period. If your point is that HSGFX is a better fund than PRWCX over multi-year periods, than you should buy it. However, past performance doesn’t support that.
It is certainly possible we’re entering another Great Depression era during which markets will continue falling for multiple years and than not recover / return to “break-even” for 2 decades - as in the 30s and 40s. If that’s your call, than invest your $$ in bear funds, Personally, I refuse to believe that’s where the U.S. and global economies are heading for the next 20 years. But that’s just my largely uninformed optimistic outlook - perhaps the unfortunate consequence of having watched far too many Louis Rukeyser programs during the 70s, 80s & 90s. Your money. Your call.
I don't believe HSGFX is a bear fund, but does attempt to adjust market exposure due to the market via examining certain metrics, valuations etc. He has been wrongly positioned during the past years primarily because his models didn't account for the Central Banks pumping money into the system. No funds invested their for me now but have to say every time I read his commentary it makes sense, at least to me.
I guess my point was many funds who have received accolades and done well with the wind at their back and some were arguably positioned correctly but still lost investors money due to outside influences...now let's see how they do when that outside influence, the insane largess of the CBs goes away...meaning QT, rate hikes etc. In other words, the tide is going out, who is wearing swim trunks?
Not sure about a Great Depression, I sure hope not, but quite possible, maybe likely an extended malaise ala the Jimmy Carter years...it does seem crazy that many believe rates get hiked, mistake is made, market crashes, then QE and up go the markets again...I'm not certain that will be the case this go round.
Best Regards,
Baseball Fan
Regarding HSGFX, I think the better option is HSAFX--a much smoother ride.
In investing, unfortunately one has to be right and get the timing right too.
But the redemption fee on top of a transaction fee limits the attractiveness of HSGFX, even in the rare year it works. IMHO, trend-following managed futures funds and inverse funds are a better deal in wipeouts like this year, and there are plenty of options in those categories (OEFs and ETFs) these days.
I track PRWCX daily and it appears to have held up relatively well this year compared to other moderate risk funds. Disappointing of course. A function of the markets. I gain some confidence in these markets because Giroux sounds upbeat whenever I hear him talk. And he’s a very smart guy with a fantastic track record.