Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal


edited January 26 in Fund Discussions
Considering this fund for a small part of my IRA, This fund has done very well in a down market this year, but am concerned about how it would perform in an up market. I believe it had a fairly significant drop last year in a short time period. I don’t need spectacular returns, just some growth. Doesn’t shorting make this fund more risky than many long funds?. Any thoughts?


  • Yes, I read this; this is how I learned about the fund. Just wondering if anyone had thoughts on this fund..
  • edited January 26
    BIVIX has done quite well for the 4 year period starting 201801 -- APR of 20.1 and MaxDD of 14.4. I picked 4 years because BIVIX is less than 5 years old.

    Screening for funds with a 4 year performance period starting 201801, APR of at least 20 and a MaxDD of 15 did not yield any funds in the Alt category. The closest I saw was SAPEX which has an APR of 17.7, MaxDD=14.6

    Some select life of fund stats vs. SP500
    APR 19.7 vs. 18.3 (impressive!)
    MaxDD 14.4 vs. 19.6 (again very impressive)
    Ulcer Index of 5.3 vs. 4.5
  • edited January 26
    I'll note here that several smart and wise folks on this forum have stated -- some funds work great until they don't. RLSFX is a good example that has stumbled badly out of the gates in 2022. I invested in BLNDX despite my "rule" (ha) of not investing in funds less than 3 years old. Not a disaster yet but I'm watching it.

    It started faltering after I bought (ha)
  • edited January 26
    I wouldn't say shorting in this case makes the fund more risky than long funds, but it reduces some risks while increasing others. The thing to understand is that this fund buys value stocks on the long side and often bets against higher priced growth stocks on the short. When value is in favor, it should do well while when growth is in favor RLSFX makes more sense as it does the opposite--favors growth stocks over value. BIVIX, I would say, reduces market based risks while increasing individual stock selection risk. The most important thing to do with these kinds of funds I think is read up about them and understand their strategies and what the manager is doing and why as well as possible:
    This fund has a fact sheet, commentaries, annual reports, strategy descriptions. I would ignore the performance numbers as those are in the past and read the documents on its web site instead. If you think value beats growth going forward, it will probably work.
  • With what Lewis said, also check out this radio interview. The manager of BIVIX, Ali Mottamed, seems to know his stuff.
  • Quick peek . Appears around Sept 20,2020 the fund took off ! Will it continue, is now the question ?
  • Hardest thing for me to get past on this fund is the high ER of 3.09% - Ouch!
    Otherwise looks good to me.
  • I should have said 3.09% for BIVRX. the insitutional BIVIX is a much cheaper 2.84%.
  • edited January 31
    M* indicates that BIVIX has a net ER of 2.84% and an adjusted ER of 2.24%.
    I personally wouldn't purchase a fund with an ER > ~1.25%.
    Many alt funds are too expensive...
  • If you have specific questions about Invenomic, do let me know. Ali & co. have been pretty responsive in the past, going so far as meeting me for coffee and an interview in lovely Moline, Illinois. I'd happily raise your questions or ask the folks there to scan this thread (which they've been known to do).

    I share, by the way, the concern over the fund's e.r. Part of the expense can be excused as "the inevitable cost of shorting securities," but the management fee is 1.74%. When I look at other five-star long-short equity funds, the equivalent numbers range from 1.20% (Alger) and 1.25% (Virtus KAR) to 1.50% (RiverPark) and 1.99% (Longboard). Again, that's management fee, not total e.r. but management fee is the thing most easily controlled by the advisor.

  • David: Thanks for the information. I use the fund with VELIX in the alternative long-short category. There R is .62 but only for 15 months, VELIX being relatively new.
  • FWIIW, BIVRX and BIVIX are closed to new investors at Schwab and TDA. Don't know when this closure occurred.
  • A fund rep told me that the soft close was due to the amount of new $$$ coming in and their capacity constraints.
  • Mgr has the hot hand for sure. Would have got in with a small position to hold a seat had I known about the close but I'm also wary of these funds which work till they stop working.
  • Spoke with Ali Motamed, one of the two PMs on the fund. Their strategy has three different products, and as an all-cap fund, it will hard close at 1.3-1.5 AUM, allowing it to invest in smaller companies when they see opportunities there. This was also mentioned in their December commentary and will be repeated in their January commentary when it's published.
  • @Dennis Baran : Are you talking 1.3-1.5 million or billion ?
  • Thx Derf. My bad. 1.3-1.5B.
  • Considered investing a little in this fund, but it would have been retirement funds, and was concerned about the risk level.
  • Davep:BIVIX Risk varies between 4 and 5 at MFOP. Max DD -14.1% 202003, Recovery months +3. MFO Great Owl (GO). Capture Ratio Overall vs. S&P is Up 72%, Down 4% = Overall U/D of 17.7% 500. Beaten S&P 500 in all periods since inception in all up-and-down periods.
Sign In or Register to comment.