Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Mr. Kerr attributes recent RPCSX underperformance to 1) a defensive portfolio shift in anticipation of economic headwinds, and 2) investments in low valuation miners, which unfortunately have not stopped falling. It's going around lately.
To me, this fund and ARIVX are vivid reminders that most common investors should invest in low cost index funds unless they can find the very few category-killing funds which consistently outperform the applicable index with attractive upside/downside capture ratios. I think that most of us on this forum likely overestimate our ability to identify such category-killing funds.
Reply to @kevindow: While I am not disagreeing - most people should invest in index funds - I think ARIVX is way better than Rocky Peak. It has given about same performance, but is so much less volatile. Now, I don't equate volatility with risk, but then again, few years back ARIVX was the "king" based on how it invests.
As I have opined multiple times. buying "large", "mid" "smalll" is a fool's game. I agree corresponding index funds should be used. Active management is best used if you trust manager to invest ACROSS The spectrum wherever you like. That is the only manager risk worth taking. If one wants to take on market risk, best to go with index fund.
Finally ability to identify category killing funds is impossible. One can never predict the future.
Comments
To me, this fund and ARIVX are vivid reminders that most common investors should invest in low cost index funds unless they can find the very few category-killing funds which consistently outperform the applicable index with attractive upside/downside capture ratios. I think that most of us on this forum likely overestimate our ability to identify such category-killing funds.
Kevin
As I have opined multiple times. buying "large", "mid" "smalll" is a fool's game. I agree corresponding index funds should be used. Active management is best used if you trust manager to invest ACROSS The spectrum wherever you like. That is the only manager risk worth taking. If one wants to take on market risk, best to go with index fund.
Finally ability to identify category killing funds is impossible. One can never predict the future.