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Hi Folks, Newish here...I am interested if anyone has some thoughts on funds/etf's that can invest flexibly....currencies/precious metals/real estate/possibly shorting???
1. Do not get into currency-specific funds or currency-focused funds in general. Just no. I would not outright short in an environment of money printing. I am not against funds that have the tools to short specific names/specific opportunities. As for currencies, look at MABFX (Merk Absolute Return) for the performance results of a fund that is long/short currencies (and whose manager is someone who I'd consider intelligent.)
2. CEF is a ...CEF with gold and silver holdings that is - at least last I looked - trading at a discount. GTU is its gold-only cousin, also trading at a discount. Both are Canadian (eh?) I'd rather suggest a gold fund than a currency-only fund.
3. Marketfield is an excellent long/short multi-asset fund, but the original no load share class is closed. Still, good fund.
Pimco Long/Short has been doing exceedingly well this year, as well (PMHDX) Whitebox Tactical (WBMRX) is another option. Other posters will offer more.
Real estate is a volatile asset class; if you are trying to protect yourself against a market decline, it's not the way to go.
ALFA is an ETF made up of top institutional/hedge fund holdings. If the S & P 500 falls below 200day MA at month's end, the fund hedges kick in. It's done quite well.
Reply to @robertwells: Happy to help. What were you looking for in terms of real estate? Inflation protection? There are varying real estate funds. They are all going to be volatile,but there are some balanced funds that can be in equity, preferred stocks and bonds that are somewhat less volatile and provide a higher yield.
I don't like multi-currency funds. I don't think multi-currency mutual funds and etfs are nimble enough to be successful playing the currency markets (and the currency markets feel very musical chairs to me - which is the best this week,who is intervening in their currency markets, rumors, bs, etc.)
I DO think that people should be diversified internationally in terms of their investments, but I don't think that people should invest in currency-specific funds.
MFLDX, Mainstay Marketfield, is pretty much go anywhere. They have hit some home-runs recently. This year they went short emerging markets bonds, for example. So they have a contrarian streak to them. It may be a tough fund to own though. For example, what if the fund went long JCP stock because everyone hates it? What if you own the fund and you disagree with the manager's new position in JCP, and then JCP announces restructuring and the stock goes further toward zero? Do you then sell the fund because of this?
Any fund like this, (I don't use these for clients or myself) you almost would want to _not_ follow what they are investing in and maybe check their performance once every 5 years... but that would be almost impossible to do.
Reply to @scott: He Scott...Thanks for the info...I've been thinking in the event (hope it doesnt happen) there is a problem with the dollar, the safe haven of "cash" wouldnt help...
Reply to @robertwells: The original shares (MFLDX) are closed, but the load shares (A/B/C) shares are available and more expensive in terms of expense ratio. Still, good fund.
Additionally, triple net lease RE has the tenant in many cases paying significant expenses. "Net lease REITs generally have long term leases under which the tenant pays utilities, property tax, insurance and maintenance expense, although leases vary in some respects. Thus, landlords are not exposed to the risk of expense inflation and the transaction is, in some respects, more similar to a financing arrangement than a traditional lease." (http://seekingalpha.com/article/1543822-net-lease-assets-can-be-safer-than-comparable-bonds-investment-implications)
REITs will not do well - at least initially, and it depends on the velocity of the move and the REIT - in a rising interest rate environment.
I'd be globally diversified in terms of real estate and not have that be the core of inflation protection. I'd also look at materials names, which have not done well this year. Health care is another option. Some energy names are reasonably priced or very reasonably priced.
What do people REALLY need? That's the big question. My view is that those companies can pass through price increases in a period of significant inflation.
Whoops, sorry! MFLDX may be one to keep an eye on. Generalization: Most closed funds re-open from time to time as they stumble or as their relative performance may suffer during a 3-year period. For example, "many" small cap value funds closed between 2005-2007 but then reopened after the big drop in 2008.
Reply to @paydirt: BTW, I am meeting with the wholesaler for Whitebox next Wednesday. I probably will not be interested in any of the funds, because I am fussy like that.
Reply to @robertwells: These two funds are probably considered "mainstream" and both hold either gold mining shares or bullion equivalents with corresponding under performance with the bear market in precious metals ongoing since mid 2011.Another consideration for precious metals are commision free ETFs@ Fidelity(PICK,RING,SLVR)or @ Schwab(PSAU). Limit order @ your price,1 share or a million! http://quicktake.morningstar.com/syndication/holdings.aspx?cn=GLG117&symbol=APPLX
I own FPACX,MFLDX,as core holdings and am establishing positions in WBMRX and PMHDX as I harvest some gains from the small growth area.I am retired and get a bit more conservative as the market sets new highs.
Also,take a look at MARVX a traditional L/S fund. http://portfolios.morningstar.com/fund/summary?t=MARVX®ion=USA&culture=en-US Plenty of EM bond funds available with local currency exposure as a hedge.Flip a coin? I have a small position in GYLD. Monthly dividend,conservative 60/40 mix with 40% non- dollar holdings. http://www.arrowshares.com/files/PFS00000/001a.pdf I really should add BRUFX to the list.Seldom if ever has short or precious metal holding but management will go just about anywhere else.Low turnover and exceptional long term record.Patience is the word here.Only available through the fund. LOR The Lazard World Dividend & Income Fund is a closed-end management company that seeks total return through a combination of dividends, income, and capital appreciation. The Fund will pursue this objective through a world equity strategy and a short-term emerging markets and debt strategy. The Fund will invest substantially all of its net assets in between 60 to 90 world equity securities that are financially productive and high dividend yielding. It seeks to enhance income through exposure to short-term, emerging market forward currency contracts and other emerging markets debt instruments (limited to 33.3% or less of the Fund’s total leveraged assets), which will provide exposure to emerging market currencies. These two strategies are complementary, with historically low correlation to one another, which may reduce volatility. http://www.lazardnet.com/us/mutual-funds/closed-end-funds/lor/ SEEDX looks like it will also take short positions.Good managers in a new fund Top 10 Holdings – September 30, 2013 Express Scripts Holdings Co. 5.30% Teva Pharm Inds Ltr Adr 4.98% Leucadia National Corp. 4.92% Yahoo Inc. 4.25% Loews Corp. 4.19% Chambers Street Properties 3.97% Abbvie Inc. 3.84% Oracle Corp. 3.63% GlaxoSmithKline plc 3.62% ProShares Short Russell 2000 ETF 3.49%
Reply to @robertwells: Others make some good suggestions below. Off the top of my head for total return the two obvious suspects are FPACX and PAUDX. Both will hold most anything and will short. SGENX is a global allocator with a traditionally large gold stake. APPLX and GRSPX are traditional allocators that have a bit of a conservative bent as well. Outside the box, some Matthews Asia funds tend to hold REITs and convertable bonds as well as giving some currency diversity. MAINX is reviewed at MFO.
For inflation, PRAFX is reviewed by MFO. It holds equities related to natural resources and REITs. FSRRX holds TIPs, REITs and commodity futures, but in fixed allocations. PCRDX/HACMX holds TIPs and commodity futures throuh derivatives.
Thanks to whoever initially mentioned PMHDX on MFO. Its M* chart is far better than WBMRX. Everyone may regress to the mean, but look at the 2008-9 slopes, and it has even beaten the S&P at times lately,while WBMRX ranks 41%tile for the year in L/S funds and lags the S&P. If you're splitting allotments, although PMHDX has a 10 yr hx on M*, generally positive, so it's not hot money, I would put the majority there. It has at least been through a market drop.
Reply to @TSP_Transfer: I actually own a little bit of LAND. It really hasn't done much of anything, but I continue to reinvest monthly divs.
The issue with Gladstone Land is that it is actually a triple-net real estate company. They own the land and someone comes in to farm. They are not participating in the production/sales of agriculture. It is, in my opinion, a very interesting play on agricultural land but they are not the ones selling/producing/handling the end product.
We offer land owners and farmers the following options:
1. For sellers that farm the land, we offer a long-term sale leaseback transaction which allows farmers to free up capital to repay existing indebtedness, grow their farming operations, retire or for other business endeavors.
2. For sellers that do not farm the land, we will purchase the property and keep the existing tenant on the farm with a long-term lease.
3. For farmers that find properties they want to farm, but not own, we may purchase the farm and rent it to the farmer with flexible lease terms."
Reply to @scott: "Buy land. They ain't making any more of the stuff." - Will Rogers quotes from BrainyQuote.com. Thanks Scott.Double the volume in LAND today.The monthly Div (if sustained} and long term value in your "need" investment scenario would make the stock a long term hold. Haven't considered your Div reinvestment strategy but tend to keep div's in cash and add cash if any of your "paid to wait" opportunities arise.Have't bought any INF yet.Went the mutual fund route {$ cost ave) with MTIPX. Thanks for all your input.
Reply to @TSP_Transfer: I agree with the "not making any more land" quote.
The REIT that I think a lot of people don't really think about in terms of land is Equity Lifestyle Properties (ELS). That is essentially a lot of retirement communities and RV parks/campgrounds around the country.
It's not a particularly exciting REIT to say the least (although I guess more people retiring and RVing seems to be a growing trend), but you have a real estate company with a lot of land, a good portion of which is waterfront property. (Equity Lifestyle owns 80 properties with lake, river, or ocean frontage and around 100 Equity Lifestyle properties are within 10 miles of coastal US, http://seekingalpha.com/article/741871-equity-lifestyle-properties-invest-in-a-wide-moat-reit-because-they-arent-making-more-land) I don't own it, but just throwing that out there given the land mention.
Adecoagro (AGRO) is a Latin American farmland play still majority owned by George Soros. That has not done well since IPO and has political risk, but I will say that anyone who invested in it when Brazil stocks were absolutely in the toilet earlier this Summer has done quite well.
Nestle has - I believe - purchased water rights in a number of areas. If that's the case, I find that pretty appealing, although it's certainly not a big part of the giant company.
Reply to @paydirt: "Any fund like this, (I don't use these for clients or myself) you almost would want to _not_ follow what they are investing in and maybe check their performance once every 5 years... but that would be almost impossible to do."
I look at a Marketfield as a fund that continues to make theme bets on or against and has done well. I don't want to have every fund agree exactly with my views. I can have a very long-term positive view on emerging markets, and if the managers of Marketfield believe that it is best to short EM, then great.
I actually think this is a very easy fund to hold. I have a good deal of confidence in management and they have a great deal of tools to use, as well as a global view.
Comments
2. CEF is a ...CEF with gold and silver holdings that is - at least last I looked - trading at a discount. GTU is its gold-only cousin, also trading at a discount. Both are Canadian (eh?) I'd rather suggest a gold fund than a currency-only fund.
3. Marketfield is an excellent long/short multi-asset fund, but the original no load share class is closed. Still, good fund.
Pimco Long/Short has been doing exceedingly well this year, as well (PMHDX) Whitebox Tactical (WBMRX) is another option. Other posters will offer more.
Real estate is a volatile asset class; if you are trying to protect yourself against a market decline, it's not the way to go.
ALFA is an ETF made up of top institutional/hedge fund holdings. If the S & P 500 falls below 200day MA at month's end, the fund hedges kick in. It's done quite well.
I don't like multi-currency funds. I don't think multi-currency mutual funds and etfs are nimble enough to be successful playing the currency markets (and the currency markets feel very musical chairs to me - which is the best this week,who is intervening in their currency markets, rumors, bs, etc.)
I DO think that people should be diversified internationally in terms of their investments, but I don't think that people should invest in currency-specific funds.
Any fund like this, (I don't use these for clients or myself) you almost would want to _not_ follow what they are investing in and maybe check their performance once every 5 years... but that would be almost impossible to do.
Additionally, triple net lease RE has the tenant in many cases paying significant expenses. "Net lease REITs generally have long term leases under which the tenant pays utilities, property tax, insurance and maintenance expense, although leases vary in some respects. Thus, landlords are not exposed to the risk of expense inflation and the transaction is, in some respects, more similar to a financing arrangement than a traditional lease." (http://seekingalpha.com/article/1543822-net-lease-assets-can-be-safer-than-comparable-bonds-investment-implications)
REITs will not do well - at least initially, and it depends on the velocity of the move and the REIT - in a rising interest rate environment.
I'd be globally diversified in terms of real estate and not have that be the core of inflation protection. I'd also look at materials names, which have not done well this year. Health care is another option. Some energy names are reasonably priced or very reasonably priced.
What do people REALLY need? That's the big question. My view is that those companies can pass through price increases in a period of significant inflation.
I don't believe in "portable alpha" etc.
Regards,
Ted
http://quicktake.morningstar.com/syndication/holdings.aspx?cn=GLG117&symbol=APPLX
http://www.goodhavenfunds.com/media/pdfs/GHF_FS.pdf
I own FPACX,MFLDX,as core holdings and am establishing positions in WBMRX and PMHDX as I harvest some gains from the small growth area.I am retired and get a bit more conservative as the market sets new highs.
Also,take a look at MARVX a traditional L/S fund.
http://portfolios.morningstar.com/fund/summary?t=MARVX®ion=USA&culture=en-US
Plenty of EM bond funds available with local currency exposure as a hedge.Flip a coin? I have a small position in GYLD. Monthly dividend,conservative 60/40 mix with 40% non- dollar holdings.
http://www.arrowshares.com/files/PFS00000/001a.pdf
I really should add BRUFX to the list.Seldom if ever has short or precious metal holding but management will go just about anywhere else.Low turnover and exceptional long term record.Patience is the word here.Only available through the fund.
LOR
The Lazard World Dividend & Income Fund is a closed-end management company that seeks total return through a combination of dividends, income, and capital appreciation. The Fund will pursue this objective through a world equity strategy and a short-term emerging markets and debt strategy.
The Fund will invest substantially all of its net assets in between 60 to 90 world equity securities that are financially productive and high dividend yielding.
It seeks to enhance income through exposure to short-term, emerging market forward currency contracts and other emerging markets debt instruments (limited to 33.3% or less of the Fund’s total leveraged assets), which will provide exposure to emerging market currencies.
These two strategies are complementary, with historically low correlation to one another, which may reduce volatility.
http://www.lazardnet.com/us/mutual-funds/closed-end-funds/lor/
SEEDX looks like it will also take short positions.Good managers in a new fund
Top 10 Holdings – September 30, 2013
Express Scripts Holdings Co. 5.30%
Teva Pharm Inds Ltr Adr 4.98%
Leucadia National Corp. 4.92%
Yahoo Inc. 4.25%
Loews Corp. 4.19%
Chambers Street Properties 3.97%
Abbvie Inc. 3.84%
Oracle Corp. 3.63%
GlaxoSmithKline plc 3.62%
ProShares Short Russell 2000 ETF 3.49%
https://fundresearch.fidelity.com/mutual-funds/summary/56064B662
For inflation, PRAFX is reviewed by MFO. It holds equities related to natural resources and REITs. FSRRX holds TIPs, REITs and commodity futures, but in fixed allocations. PCRDX/HACMX holds TIPs and commodity futures throuh derivatives.
The issue with Gladstone Land is that it is actually a triple-net real estate company. They own the land and someone comes in to farm. They are not participating in the production/sales of agriculture. It is, in my opinion, a very interesting play on agricultural land but they are not the ones selling/producing/handling the end product.
We offer land owners and farmers the following options:
1. For sellers that farm the land, we offer a long-term sale leaseback transaction which allows farmers to free up capital to repay existing indebtedness, grow their farming operations, retire or for other business endeavors.
2. For sellers that do not farm the land, we will purchase the property and keep the existing tenant on the farm with a long-term lease.
3. For farmers that find properties they want to farm, but not own, we may purchase the farm and rent it to the farmer with flexible lease terms."
Thanks Scott.Double the volume in LAND today.The monthly Div (if sustained} and long term value in your "need" investment scenario would make the stock a long term hold. Haven't considered your Div reinvestment strategy but tend to keep div's in cash and add cash if any of your "paid to wait" opportunities arise.Have't bought any INF yet.Went the mutual fund route {$ cost ave) with MTIPX. Thanks for all your input.
The REIT that I think a lot of people don't really think about in terms of land is Equity Lifestyle Properties (ELS). That is essentially a lot of retirement communities and RV parks/campgrounds around the country.
It's not a particularly exciting REIT to say the least (although I guess more people retiring and RVing seems to be a growing trend), but you have a real estate company with a lot of land, a good portion of which is waterfront property. (Equity Lifestyle owns 80 properties with lake, river, or ocean frontage and around 100 Equity Lifestyle properties are within 10 miles of coastal US, http://seekingalpha.com/article/741871-equity-lifestyle-properties-invest-in-a-wide-moat-reit-because-they-arent-making-more-land) I don't own it, but just throwing that out there given the land mention.
Adecoagro (AGRO) is a Latin American farmland play still majority owned by George Soros. That has not done well since IPO and has political risk, but I will say that anyone who invested in it when Brazil stocks were absolutely in the toilet earlier this Summer has done quite well.
Nestle has - I believe - purchased water rights in a number of areas. If that's the case, I find that pretty appealing, although it's certainly not a big part of the giant company.
I look at a Marketfield as a fund that continues to make theme bets on or against and has done well. I don't want to have every fund agree exactly with my views. I can have a very long-term positive view on emerging markets, and if the managers of Marketfield believe that it is best to short EM, then great.
I actually think this is a very easy fund to hold. I have a good deal of confidence in management and they have a great deal of tools to use, as well as a global view.