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David Snowball's June Commentary Is Now Available:
David provides an interesting profile of Centaur Total Return (TILDX). The returns, risk-adjusted, are enticing; for my part, I avoid funds with ruinous ER's (2.10%) and high turnover ratios (over 100%). This fund has saddled owners in taxable accounts with huge short-term capital gains distributions in recent years. Last year's total distribution was $1.48 at NAV of $12.90, for example. Maybe other prospective customers have seen the same drawbacks as they have stayed away.
@LewisBraham: "attacked?" I thought it was a pretty mild exchange compared to what sometimes passes for discourse on this board. With respect to a long-winded discussion the other day about "contrarian" funds, it seems TILDX might fit the definition.
A fund that’s been open since ‘05 with only 25 mil? That is odd. I read more than a decade ago that most funds feel they need at least 50 mil to remain viable. Kudos to management for staying with it. In a fund that small, a high ER wouldn’t concern me too much. It’s to be expected. And should come down as assets grow.
I did detect a generous dose of sarcasm within the thread Lewis linked. It’s to be expected anytime the prevailing wisdom here is confronted with the stark reality that some see value in cash. Not sure why that bothers them so much. But let’s be frank: Saying you favor holding a large dose of cash is tantamount to showing up at a wild booze-binge, and than sitting off in a corner sipping ginger ale. Just doesn’t cut it. -
Edit: To be fair (and so as not to be dismissive of the other side) a case can be made for investing cash yourself rather than paying a manager 2+% to do it for you.
I suspect Mr. Ashton's hedge fund pays the bills. As I noted in the piece, money flooded in when he crushed in both '08 and '09; having shown up after they should have, investors grew impatient at 7-9% returns with muted volatility and began tricking out. At this point, he's running a fund where he know the bulk of his investors by name. At $25 million, he covers his fixed expenses and offers a service to those who've stuck with him; at much below $25 million ...
@David_Snowball- David, thanks much for your non-financial comments this month. I'm not going to be specific, but I suspect that you'll know which ones.
A deeply moving tribute to Marty Whitman. I was only vaguely familiar with a couple oft-quoted lines from the Yeats poem - “An aged man is but a paltry thing, A tattered coat upon a stick ... “ - often used to represent metaphor. But the subordinating conjunction “unless” (which follows the phrase) turns that thought completely around. I’m still grappling to understand fully Yeats’ meanings - but a nice touch to the Whitman tribute.
Comments
https://mutualfundobserver.com/discuss/discussion/38730/centaur-total-return-fund-tildx/p1
I did detect a generous dose of sarcasm within the thread Lewis linked. It’s to be expected anytime the prevailing wisdom here is confronted with the stark reality that some see value in cash. Not sure why that bothers them so much. But let’s be frank: Saying you favor holding a large dose of cash is tantamount to showing up at a wild booze-binge, and than sitting off in a corner sipping ginger ale. Just doesn’t cut it.
-
Edit: To be fair (and so as not to be dismissive of the other side) a case can be made for investing cash yourself rather than paying a manager 2+% to do it for you.
David
A deeply moving tribute to Marty Whitman. I was only vaguely familiar with a couple oft-quoted lines from the Yeats poem - “An aged man is but a paltry thing, A tattered coat upon a stick ... “ - often used to represent metaphor. But the subordinating conjunction “unless” (which follows the phrase) turns that thought completely around. I’m still grappling to understand fully Yeats’ meanings - but a nice touch to the Whitman tribute.