My alternatives sucked. Combined 1 week return = -1.45% (neg)
4 Funds included: TMSRX, ABRZX, PRPFX, QED
My equity & balanced sleeve did better. Combined 1 week return = -.0.56% (neg)
4 Funds included : PRWCX, DODBX, RPGAX, FLJP
I’ve never viewed alternatives as “defensive”. But, over the past, they’ve held up much better than the equity & balanced funds in rough markets. I should note that two equity funds owned (the larger being GLFOX) and 2 stocks owned are not included in the above totals. Those are part of a separate “real assets” sleeve.
For comparison, here’s a few I track (1-week / Lipper)
TRBCX - 6.19%
Some factors that affected markets this week:
- Interest rates shot up. This hurt most bond holdings. It helped funds with outsized exposure to banks / financials. This is evident in the positive return for PRFDX - TRP’s Equity and Income fund. However, rate sensitive sectors / funds were hurt. Price’s real estate fund, TRREX, fell 3.32%.
- Minutes from last FOMC meeting were released indicating a more hawkish Fed stance / Ditto above.
- Data released showed accelerating wage growth. / Ditto above.
- Gold and p/m miners got slammed, though they’re still above their lowest levels of the past 12 months.
- Tech got whacked.
- Price’s PRAFX, their real asset fund, appears to have suffered from Schizophrenia, ending the week flat - caught between the plunge in gold and precious metals mining stocks and the whirlwind upside for many other metals. This one holds a lot of real estate, which also hurt.
One interesting tidbit ….. DFND, an intriguing looking defensive long-short fund I’ve been watching, tumbled more than 5% in the week. Now, how do you accomplish that?