Escaping the Grandeur of Wasatch

VintageFreak

These are the Wasatch Funds I own today. I have been selling them in one place and then buying in another, booking gains to offset losses on the books. Have been doing so for the past 2 years. Time has come now to sell some and only hold those I want in 2013. Need to start thinking now so I am ready to make adjustments in a jiffy.

WAEMX, WAHGX, WAGOX, WAIGX. Only one - WAEMX is closed now, so if I sell I cannot buy again (since I'm using NTF brokerage)

So I have been pouring over Wasatch Prospectus and Reports all of yesterday. I've looked at asset breakdowns. I'm thinking if I only buy WAIGX and WAHGX, that combined gives me exposure like WAGOX while at the same time gives me enough WAEMX like exposure through WAIGX.

I don't want to have any sudden regrets, so taking baby steps reducing number of funds. Eventually maybe I only own WAGOX to get "all" the exposure I need out of Wasatch (just like in my IRA I do same with GPGOX)

Would appreciate thoughts on this.

bee

This seems to make sense on the global equity side of your portfolio. Do you also have exposure to global debt fund(s)? I have lately been pairing TGBAX (which I may change to TTRZX) with equity funds WAEMX(EM) and OAKWX(World).

TonyGstring

Would hold onto WAEMX, and WAIGX is good. Looks like you're much more experienced in Wasatch than I am, so curious why the decision to buy/add these funds if you can add to GPGOX or get GPROX?

Good advice from bee. TGBAX is in a class of it's own in that sector, and have also considered changing to TTRZX but isn't offered at my broker (Wells). Currently have a limit order for GIM that almost triggered today.
OAKWX & ARTGX are great global equity funds.

VintageFreak

Reply to @bee: When yuu say "global debt" are you saying bonds? No I don't have any foreign bonds or EM bonds. Never ever owned them. Only bonds I ever owned was some PTTRX in my wife's 401k. And I have some VIPSX.

And yes I also hold RPHYX as a cash substitute. Not a whole lot, but some.

VintageFreak

Reply to @TonyGstring: I do own GPGOX in my IRA. This is for my taxable accounts though.

I should mention I also have SFGIX. Again, folks, I'm reducing my number of funds - that's the objective. A combination of stupidity and trading to book gains vs losses in the books prompted me to buy lot of funds. Don't need to do that as much anymore (and of course I think I'm getting less stupid with age I think)

MikeM

Hi VF. I was wondering in your quest to reduce funds, which I think is a great idea, do you have a plan where you want to end up? My own belief is that you probably can have a well diversified portfolio with about 12 funds, probably less if you use the go-anywhere manager approach.

We all probably evolve to the system that is most comfortable for ourselves. Many here at MFO would say they like to spread there bets out between many managers, kind of an averaging approach. They end up with 30, 50 or more funds. Not for me. I believe there is a point where too many funds diminish returns and indexing would be more appropriate. Easy to lose focus I think. For my own portfolio, I like to have 90% of my money in maybe 10-12 funds that I believe have top notch management with above average track records over time. At times I'll tweak this core portfolio too - a little. For example, I had ARIVX as my only small cap fund at the tune of 10%. Because of it's slow performance in high flying markets, I reduced to 5% and put the other 5% in GPGOX. Two very different small caps so it made sense to me. And I know I'm going to have to leave other top funds out of this mix, but hey, can't lose focus.

The other 10%? Well "that's" where my ego thinks I can add alpha . Let's face it, I wouldn't enjoy this discussion board so much if I didn't like looking at and test driving new funds from time to time.

Anyway, just wondering what your ultimate goal for fund reduction was.

VintageFreak

Mike,

Ultimate goal is simplification. An impediment to meeting this goal as I explained above was my need to "churn" my portfolio to book gains to offset losses on the books. I have a lot primarily because of investing in stock of company i or my wife (keep guessing) worked at which then went bankrupt.

So, I've been thinking about this since I started this thread. After examining the portfolios of the 4 Wasatch funds I own, I am coming to conclusion instead of keeping WAIGX and WAHGX, I should ONLY keep WAGOX. WAGOX seems to be giving me exposure across what WAIGX, WAHGX and WAEMX does. In fact WAGOX owns more of Emerging Markets as percentage of total assets than in WAIGX. Needless to say I will not be buying as much as I own in the other three into WAGOX. Besides I also own SFGIX which I plan to DCA into.

So next week I expect to sell all 4 at the brokerage I own them at, one, one day at a time with the first being WAGOX. Meanwhile I will start rolling into WAGOX at another brokerage.

This is how you do it people !!!

Ted

Reply to @Vintage Freak: Wasatch: "A Little Fund Shop With Big Results" Excellent fund company.
Regards,
Ted
http://online.barrons.com/article/SB50001424052748703792204578221830102159970.html#printMode

VintageFreak

Reply to @Ted: Yes Ted. If owning one fund gives me exposure to most of the best they have to offer, then that's what I wanna do. Thanks.