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Pimco's view so far has been quite bearish on Treasury while Bill trades in and out of it. Ironic, is it? Overall this should not influence how Gudefin & Lahr operate. Please check out the fund allocation for the past 6 months. The cash level has came down considerably since inception and it still holds some gold.
My reading simply tells me the manager is only looking to legacy PIMCO resources for help in bond holding selection. I bought the fund because of the managers in the way they managed their previous fund. I am convinced the decision to buy a bit of Gold wasn't advice from Gross or El-Erian.
I think the only difference between Gudefin/Lahr Mutual Disco and Gudefin/Lahr Pimco EqS in terms of "tone" and "feel" is that there appears to be a somewhat greater emphasis on currency use.
Reply to @Maurice: Whether they are old and whether they fart or whether they do both I do not know. I meant "legacy expertise", like you know "legacy assets".
PIMCOs claim to fame is their bond fund acumen. They have been making serious forays into the equity fund market by hiring / wooing away stock investors, like bringing back El-erian or stealing Gudefin from her former employer. If Gudefin is going to listen to any of incumbent folks at PIMCO it follows it will be for their bond expertise.
Reply to @VintageFreak: These managers don't get to where they are today without solid discipline. So far the fund has not been loaded with bonds, particularly emerging market bonds as favor by Gross and El-erian. Their cautious view on current market is reflected in the high cash level and a small exposure to gold. If one goes back before they joined Pimco, this is consistent of how they invest.
During the short period (1/31/2007 - 12/6/2009) that Lahr and Gudefin managed Mutual Global Discovery, their performance was clearly underwhelming. They were extremely cautious in 2008 and 2009, but by doing so, they missed most of the bounce up from the 3/9/2009 low in the S&P500. And their performance at PTHDX is more of the same, great downside protection but poor upside participation.
Lahr and Gudefin were brought into PIMCO because of their pedigree and youth, but not because of a remarkable track record.
But during that 3 year period --- Lahr and Gudefin handily bested most World Stock funds including top favorites such as OAKGX. Lahr & Gudefin over that period also killed PRGSX - T.Rowe Price Global Stock fund.
Additionally - around the time that DODWX debuted in 2008 (say 5/1/2008) until 12/1/2009 --- Lahr & Gudefin also handily beated DODWX.
So they are going to be quite a bit more cautious than your typical World Stock fund and so investors would have to determine whether that would be a good fit for their portfolio which would allow room to be more aggressive elsewhere in their portfolio.
DODWX and PRGSX are and have been truly laggards in the World Stock category, so comparing them with MDISX is meaningless IMO. DODWX and PRGSX are clearly not among the elite actively managed World Stock funds.
During the period of 1/31/2007 - 12/6/2009, MDISX was handily bested by the following global funds: NWGRX (recently closed to new investors), JGV, SGIIX, and RIVFX. And David Winters' fund, WGRNX, had slightly lower performance during this period. During this period MDISX outperformed OAKGX by only 7%.
During the rebound period from 03/09/2009 until Lahr and Gudefin stopped managing MDISX in late December 2009, RIVFX, OAKGX, NWGRX, JGV, WGRNX, and SGIIX crushed MDISX. In fact, OAKGX outperformed MDISX by a whopping 49% during this period.
Since inception of PTHDX, the following global funds have handily bested this fund: RIVFX, WGRNX, SGIIX, NWGRX, and JGV, and OAKGX and MDISX have slightly lagged PTHDX.
I continue to be underwhelmed by the performance of Lahr and Gudefin, and I do not own PTHDX and it is not among the top global funds that I track.
Scott, so you wouldn't compare the fund even with WGRNX, managed by David Winters who used to manage MDISX ?
According to the prospectus for PTHDX, it is clearly an all-cap global allocation fund by design, but its allocation so far has been more in line with more attractive World Stock competitors such as WGRNX, NWGRX, RIVFX, MFCFX/HAFLX, ARTHX, ARTGX, TBHDX, and JNGOX. I tried to link a chart using the "a href" technique but no luck.
Now if you want to consider PTHDX to be an all-cap global allocation fund according to the principal investment strategies, then more attractive global allocation funds would include: TIBIX, PGAIX, IVWIX, SGIIX, LSWWX, JGV, PAUIX, and PGDIX. Again, unable to link the chart.
Whether one considers PTHDX to be a World Stock fund by current allocation or a World Allocation fund by its principal investment strategies, there are clearly more attractive funds in these classes IMO.
Comments
--- Featuring Anne Gudefin & Masha Gordon
http://investments.pimco.com/insights/External Documents/What_a_Multi-Speed_World_May_Mean_for_Equities_Gudefin_Gordon.pdf
Whether they are old and whether they fart or whether they do both I do not know. I meant "legacy expertise", like you know "legacy assets".
PIMCOs claim to fame is their bond fund acumen. They have been making serious forays into the equity fund market by hiring / wooing away stock investors, like bringing back El-erian or stealing Gudefin from her former employer. If Gudefin is going to listen to any of incumbent folks at PIMCO it follows it will be for their bond expertise.
Lahr and Gudefin were brought into PIMCO because of their pedigree and youth, but not because of a remarkable track record.
Kevin
Additionally - around the time that DODWX debuted in 2008 (say 5/1/2008) until 12/1/2009 --- Lahr & Gudefin also handily beated DODWX.
So they are going to be quite a bit more cautious than your typical World Stock fund and so investors would have to determine whether that would be a good fit for their portfolio which would allow room to be more aggressive elsewhere in their portfolio.
During the period of 1/31/2007 - 12/6/2009, MDISX was handily bested by the following global funds: NWGRX (recently closed to new investors), JGV, SGIIX, and RIVFX. And David Winters' fund, WGRNX, had slightly lower performance during this period. During this period MDISX outperformed OAKGX by only 7%.
During the rebound period from 03/09/2009 until Lahr and Gudefin stopped managing MDISX in late December 2009, RIVFX, OAKGX, NWGRX, JGV, WGRNX, and SGIIX crushed MDISX. In fact, OAKGX outperformed MDISX by a whopping 49% during this period.
Since inception of PTHDX, the following global funds have handily bested this fund: RIVFX, WGRNX, SGIIX, NWGRX, and JGV, and OAKGX and MDISX have slightly lagged PTHDX.
I continue to be underwhelmed by the performance of Lahr and Gudefin, and I do not own PTHDX and it is not among the top global funds that I track.
Kevin
According to the prospectus for PTHDX, it is clearly an all-cap global allocation fund by design, but its allocation so far has been more in line with more attractive World Stock competitors such as WGRNX, NWGRX, RIVFX, MFCFX/HAFLX, ARTHX, ARTGX, TBHDX, and JNGOX. I tried to link a chart using the "a href" technique but no luck.
Now if you want to consider PTHDX to be an all-cap global allocation fund according to the principal investment strategies, then more attractive global allocation funds would include: TIBIX, PGAIX, IVWIX, SGIIX, LSWWX, JGV, PAUIX, and PGDIX. Again, unable to link the chart.
Whether one considers PTHDX to be a World Stock fund by current allocation or a World Allocation fund by its principal investment strategies, there are clearly more attractive funds in these classes IMO.
Kevin