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Selling PAUDX Today!!!

edited August 2013 in Fund Discussions
Because Of What Is Happening With Bonds I Dont Think PAUDX Is Worth Holding Anymore. I Should Have Sold It Sooner!!


  • no, its not a bond fund, can go anywhere. An excellent manager who was too bearish and made some poor choices. It will come back.
  • No. Flexible mandate. It CHOSE bonds.
  • Reply to @MarkM: Hell, I can choose that good!
  • Reply to @MarkM: True, but you gotta admit his choices are required to be from within the house that bonds built=).
  • I'm sticking with PAUDX and PGMDX.

    On the other hand, AQRNX and ARCNX - If I don't see Semi Annual Report online by end of August, that's it.
  • Reply to @Charles: A-ha, but they do have a lot of potentiallly sucky equity funds too:-) Full disclosure, I own PTHDX, but that was because I followed the managers from their previous fund to here.
  • About a year ago, I put a pretty healthy slug into PAUDX. I really do believe that a go-anywhere type fund (with a good-sized bond sleeve) is a good bet. The recent market gyrations cast a telling glance towards funds who merit consideration in this arena. I think this has been an important period as relates to this evaluation.

    PAUDX is not distinguishing itself. Though I haven't sold, I am wondering whether it might be better to lean towards those who've shown a more solid track...BERIX in my portfolio comes to mind.
  • Reply to @VintageFreak: I bought PTHDX when it started and after holding it for a few years, I exchanged it for PQIDX based on the suggestions here.
  • I sold PAUDX, which I bought over two years. Have been thinking for sometime, whether to hold or reduce it or sold it completely. Went with that last option today.

    I am interested in an alternative for PAUDX that can invest anywhere with flexible mandate and can work as a diversifier in portfolio. I am leaning towards Alternative funds suggested on this web site and covered in David's monthly commentary. Is there any alternative fund with global flexible mandate like PAUIX/PAUDX ?

  • After reading about PAUDX in this forum, I purchased some this past December. At one point, I was hoping that PIMCO could become a "one stop shopping" fund source for me, as much as any one fund family could be. Over the past eight months or so, PAUDX has really dug itself into a hole...not sure what to do. I'm becoming somewhat disenchanted with PIMCO's "hocus pocus" in many of their funds (derivative strategies, etc.) and rockstar mentality where many of the rockstars (e.g. Gross and Arnott) seem to be making some poor calls lately. (my posting from a thread earlier this month)
  • Reply to @mrc70: Good for you. I just wasn't a fan of the TIBIX managers who moved to PQIDX.
  • Very Interesting. One screener shows it invested 148% in bonds (obviously through derivatives) and 18% in stocks sold short. Arnott may yet be proven right here, but the markets obviously haven't behaved as he anticipated. Money fleeing compounds his problems. I've grown weary of these "niche" or "boutique" funds - which can be screening hot for stretches than cool off. (plain vanilla here please:-)

    M* gives PAUDX 3 stars. Lipper scores it an average of 2 (out of 5) on their multi-area scale. Max Funds gives it a very low D. But, Fund Mojo likes it - grading it A - apparently largely on their confidence in management.
  • Reply to @VintageFreak: PGMDX Is Down Even More Than PAUDX. PGMDX Is A One Star Fund!! I Used To Own It, I Bought It In 2009 When It Came Out And Sold It Last November. I Got Tired Of Hearing M. El-Erian Telling Everyone How Smart He Was, But Not Putting Up Good Numbers To Back Up His Big Mouth. By The Way According To M PGMDX Is 95% In Bonds. (not smart)
  • Reply to @PRESSmUP: I Also Own BERIX - Nice Performance, Nice Expenses Ratio 68%, They Are Holding 21% In Cash And Are Still Up Over 8% ytd.
  • Reply to @mrc70: Take A Look At White Box Tactical Opportunities Fund (WBMIX) I Own It, Its A Long Short Fund, Not a Global Allocation Fund.
  • Reply to @Charles: You Are Absolutley Correct!!!
  • Reply to @hank: Max Funds Is Smarter Than Morningstar. Morningstar Rates It A Silver Fund (their second Highest rating)
  • edited August 2013
    I let Pimco All Authority (PAUAX) go a while back and put the proceeds into Marketfield (MFADX). Both of these funds were/are members of my specality sleeve found in the growth area of my portfolio. So far this was a good move and I am pleased. I did hold onto my possition in All Asset (PASAX) and currently it is the laggard of its sleeve consisting of five other funds FKINX, ISFAX, PGBAX, CAPAX and AZNAX.

    I plan to hold PASAX a while longer perhaps it will get more instep with the market or the market will come more in line with its positioning. If it continues to trail the others within its sleeve, in time, I'll look to change it out for something else. I have PASAX classified as a hybrid income fund and it does offer some character and flair to the sleeve not found in the other funds.
  • Reply to @Skeeter: I think All Asset will be a good play on credit FI when the wipeout has run its course ... it's heavy in EMs, a lot of it in EM currencies, and a nice combo of the many Pimco credit strategies. It may have a way to go before it turns, though. I bought a first chunk in June and ended up not buying any more and eventually selling, after the little bump it got after the May downturn didn't have staying power.

    I continue to think investors who are counting on Arnott to be flexible and alter the allocations of his funds to any significant degree are going to be disappointed. He doesn't have the wiggle room he used to have when the AUM were lower.
  • edited August 2013
    Reply to @ducrow: Yep - MS* appears to give it 4-stars over 5 years. Overall, they give it only 3 (the basis of my earlier observation). Here's the M* ratings from Schwab's site

    Not a fan of the rating services. But in fairness to them, these types of go-anywhere funds have to be among the hardest for them to assess with any consistency. Maybe they shouldn't even attempt.
  • edited August 2013
    Reply to @AndyJ: I also held PAUDIX for a short period, with just the minimum $2500 to watch it closely and get the feel of the animal. I didn't like what I saw, and got out in late June... broke even on deal.

    With respect to your observation re wiggle room limited by AUM, I think that you're right, and it occurs to me that this is one area where we small investors do have an advantage... we too can "go anywhere", and if we keep on top of our stuff we do have the flexibility to make reasonably quick moves in and out of various areas. I regard this as "fine tuning", and as long as it isn't done on a wholesale or daily basis, may result in a bit of performance improvement.

    When I make an error in judgement regarding a sector or a sleeve, that's my responsibility. But with a fund like PAUDIX, they are supposed to be making the calls, and if they can't do any better than that, why bother with them?
  • Reply to @ducrow: I'm in PAUDX, PGMDX just like I'm in HSGFX, HSTRX. And just like I am in AQRNX,ARCNX. As long as I don't get bulls**t from manager I will stick around for some time.
  • Wow, this post got a lot of response. I sold down, but not all of my PAUIX - yet. I've owned it for a little over a year and like everyone else I'm disappointed with it. But in hind sight, what else would you expect from a hyped-up bond fund when bonds are in a funk. It may have a go-any-where mandate, but it doesn't seem to adjust much.

    I have been leery about Pimco funds in general for a long time with their derivatives and hedging structure. But hey, they definitely have the best marketing staff in the business. They are so good they can even sell equity funds from a bond store.
  • Reply to @MikeM: "It may have a go-any-where mandate, but it doesn't seem to adjust much. "

    I still think an "unconstrained" PAUDX (which could use any etfs instead of just Pimco funds) would be very popular.
  • Reply to @scott: It might be really different if Arnott ran it, but Mo E-E's PGAIX does Pimco, non-Pimco, and some individual assets (or at least used to) on the basis of the Pimco outlook, and it's a perennial dog. (Not to insult my canine friends ...)

    I'm still looking for the perfecto strategic ETF vehicle ... I kind of like SPDR's GAL ... but it's not exactly taking off in popularity/trading.
  • Reply to @Old_Joe: Joe, so that was All-A, All-A? I like straight All-A a little better ... something about that semi-permanent short on U.S. stocks in All-Everything doesn't seem like such a good idea.
  • Reply to @AndyJ:

    Thanks for your comment. Hopefully, it will find some traction soon.
  • edited August 2013
    Reply to @AndyJ:

    Hi AndyJ,

    Thanks for your comment. Hopefully, PASAX (All Asset) will be finding traction soon. And, with this, its flair will become in style once again. Otherwise, it will indeed need a make over and if Arnott does not want to find the flexibility to position it to the faster currents of the markets I guess I'll replace it with another fund. It want be the first fund that I have kicked to the curb ... and, I am sure it want be the last. Investors form my thoughts are entitled to good performance. If a fund reaches the size where it can not be reasonably positioned to capture good returns ... Well, that is the fault of management by letting the fund become too large to be effectively managed rather than closing it to new money. Anyway, I plan to give it a little longer as it accounts for about 15% of the, six position, hybrid income sleeve of my portfolio. This is one of the reasons I like what the sleeve system offers me. When one fund is lagging then there are the other five, in this case, to offer traction and even though the sleeve is not performing at its full capacity it is still, in this case, moving forward.

    The last fund that I kicked to the curb was Ivy Asset Strategy (WASAX). This fund was a member of the specality sleeve found in the growth area of my portfolio. Some say that it had become too large and that its traders dumped too many future contracts in the market in a short period of time that disrupted the markets and was a contributor to the flash crash. I felt it had become too large and was too slow to reposition to changing market currents ... and the flash crash was all that was needed to give me "good" cause to finally dunp it. At one time, I believe it was rated five stars by Morningstar and today I believe it now carries only a three star rating.

    If anyone has any thoughts of a good fund for a replacement of PASAX ... Please speak up.

  • Reply to @Skeeter: Take A Look At JNBSX (i own it) Since 2008 Thru 2012 It Returned 44.49% While PASAX Returned 36.44%. The Expense Ratio Is Only .59% Current Yield Is 4.88% According To M.
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