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TCAF (D. GIROUX). M* teases out 3 stocks from its portfolio.
These three stocks already figured in the fund’s holdings, so not new buys for Giroux. Surprising strength just judging by how well they have held up the last couple of down market days. RVTY defied the big drops in all indices on Wednesday.
Another thread was devoted to healthcare, but it might be worth pointing out that Giroux seems to find value in medical devices, to cherry pick the TCAF portfolio. The sector is down biggly, as evidenced by the huge 2022 drop in one small ETF devoted to medical devices, MDEV. (A bigger fund is IHI.) Many on the MFO board are unsettled by investing in big pharma in particular, yet a stock like GSK appears to be a value investor’s gift. IMHO, value investing may require holding one’s nose.
Thanks for the link. Good analysis. I bought this for my Roth IRA, which has the longest investing horizon. I wasn’t expecting a clone of PRWCX but respect Giroux’s record. My Roth is value heavy in stocks, so this should add some growth.
I have never followed Mr Giroux’s fund, but I do think his ETF can work for me. I’m dialing back on aggressive growth, so TCAF’s GARP makes sense. The three medical device companies highlighted recently (BDX, RVTY, FTV) were all up today. They have struggled in recent months, along with the healthcare sector, so maybe Giroux is on to something.
Hi @BenWP. With the healthcare area, of which you are aware, one has many ways to play this area these days. IMHO, these areas have been out of favor mostly for reasons of money traveling to other sectors, until 'too hot to touch'. Long term, at least for this house; finds returns in healthcare of 10 years or more to still remain favorable. One's temperament to hold on, being a possible factor, of course. Not unlike other equity market areas, one finds the ebb and flow. However, active funds such as FSPHX and FSMEX have decent long term returns. Two other etf's we hold, that have a shorter life span is FHLC (Fido health) and IHI (Invesco med. tech). They've not done much recently, but we remain inclined to hold as we believe in this area, not unlike technology, too. My inflation adjusted 2 cents worth.
I'm itching to buy TCAF but wondering how much of Giroux's track record is allocation and also the fixed income side vs. stock selection. Fortunately, I've got a chunk elsewhere in PRWCX. Also looking at American Funds' CGDV. Have no load American at Fidelity but expense ratio's are on the higher side relative to their new active ETF's.
Comments
Another thread was devoted to healthcare, but it might be worth pointing out that Giroux seems to find value in medical devices, to cherry pick the TCAF portfolio. The sector is down biggly, as evidenced by the huge 2022 drop in one small ETF devoted to medical devices, MDEV. (A bigger fund is IHI.) Many on the MFO board are unsettled by investing in big pharma in particular, yet a stock like GSK appears to be a value investor’s gift. IMHO, value investing may require holding one’s nose.
Link
My inflation adjusted 2 cents worth.