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Since David's focused some attention on Stephen Dodson's concentrated equity fund BRTNX, I thought I'd pass along that it's now available with a TF at Vanguard, minimum $5k taxable and $1k IRA. (As usual, you avoid the horrors of the Vanguard 6-month redemption fee with a TF fund.)
Absolutely great news. Bravo to Mr. Dodson and hats-off to Vanguard.
Here's screenshot:
Still not available at Schwab...but Vanguard availability provides big step in giving folks better opportunity to invest with this top-notch fund manager.
Reply to @VintageFreak: Stephen was funny on the subject in our conference call. He's just adamant that he won't become a NTF ("an NTF"?) fund because that would require jacking up the expense ratio for everybody (40 bps would be needed to match the typical supermarket fee) to support the preferences of some. An interesting perspective. David
Reply to @David_Snowball: Yep, I remember that too. But I think he did admit that he was working with some major fund houses to expand availability. I'm presuming he was able to strike a fair and shareholder friendly deal with Vanguard. Certainly hope that is the case.
Reply to @David_Snowball: Strange. I thought 0.25 would be enough. You know he could up the minimum investment to $10k too for supermarkets. Or make redemption fee on shares held 1 year or less. Like MXXVX for instance. And maybe PVFIX, not sure.
Load is blasphemy for me. Paying commission for funds is against my religion. I'm perpetually paying an expense ratio. I shouldn't have to pay commission of any kind and if I'm well behaved redemption fee I can avoid.
As usual, I'm a bit confused. M* doesn't give the fund a 3 year rating and its 1 yr ratings has it underperforming its peer group and the S&P500. The initial review in 2-12 was favorable, but has it regressed to the mean?
It's hard for a new, independent fund to raise assets. Kudos to Bretton for not going the NTF route, which adds at least 35 bps in annual expenses. Osterweis started out much the same way, and they have done very well by providing shareholders decent returns with reasonable risk. My only word of caution, as it is with any new fund is that early results are usually not indicative of what to expect on a long-term basis. After all, with almost 20% in cash and only 17-18 positions, one would think this will change pretty dramatically when assets have gone from $7 million to $50 million and so forth. Perhaps not, but one need only look at funds that have started similarly in the midcap arena, like OSTFX, DEFIX, APPLX. Those funds still run concentrated portfolios, but own at least 40 positions. Let's hope Mr. Dodson has equally good success. He appears to be going at it in the right way.
Reply to @David_Snowball: That is the way it works. At one time, I held APPLX direct, before it became available via supermarket, and the E.R. went up (from memory here) from 0.96 to 1.25. I called to ask what happened, and was told that was the price of becoming an NTF fund at the supermarkets, because the brokers have to get their cut some way, whether from a higher E.R. or a TF. And the fund company has to raise the price on all shares because any difference between direct and broker purchased would be a disincentive to buy from the broker.
It's always worth doing the math on a fund available in both TF and NTF share classes ... the TF fund can end up being much cheaper overall depending on the size of the investment and the anticipated holding period.
Reply to @STB65: STB, it hasn't been around for 3 years, and the strategy is more on the defensive side, so you wouldn't expect it to top the charts after a year of all stocks going up and up and up.
This conversation reminds me of why I never pay a load, and never a TF. I'm with Vintage Freak on this one. So, I buy retail, direct from the fund. That's what I've done since '03, when I started this adventure.
Stephen has been reading this thread and says "thanks," by the way. He's fairly sure that FINRA regs preclude his saying it directly, in a post here. After our conference call with him, some folks reached out to ask about Vanguard availability. He suggested they ask Vanguard and, mirabile dictu, the Big V was suddenly receptive to the possibility of his inclusion.
Comments
Here's screenshot:
Still not available at Schwab...but Vanguard availability provides big step in giving folks better opportunity to invest with this top-notch fund manager.
Thanks for sharing Andy.
A lot of people don't like 6-month redemption periods, thus the reminder in the OP.
Load is blasphemy for me. Paying commission for funds is against my religion. I'm perpetually paying an expense ratio. I shouldn't have to pay commission of any kind and if I'm well behaved redemption fee I can avoid.
It's always worth doing the math on a fund available in both TF and NTF share classes ... the TF fund can end up being much cheaper overall depending on the size of the investment and the anticipated holding period.
David
For what interest it holds,
David