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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.

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Barron's on Funds & Retirement, 12/16/23

yogibearbullyogibearbull
edited December 2023 in Fund Discussions
From
LINK
https://www.barrons.com/magazine?mod=BOL_TOPNAV

FUNDS. In the ETF performance race YTD, #1-ARKK, #2-FBCG, but they got there in very different ways. Also, FBCG is a long-term winner.

FUNDS. HEDGE-funds are suing the SEC over new reporting and disclosure rules for short-selling, swaps and securities-lending. They are arguing that the interrelated nature of these activities makes these rules problematic. Some fund firms (Price/TROW, etc) and university endowments (Harvard, etc) are also complaining about the new rules. New rules may affect how the activists operate – they make the news, but their long-term influence on valuations has been mixed.

FUNDS. Forget cheap small-caps (R2000), the micro-caps are super-cheap. The economy avoiding recession and the Fed cutting rates in 2024 will provide the needed spark as these companies live and breathe in debt. Mentioned are several micro-caps with P/B in the range 0.8-1.9 – AVALX, BRSIX, BRSVX, FRMCX, OBMCX, PVIVX, WAMVX; ETF IWC; included for comparison are R2000 IWM (P/B 1.6), SP500 SPY (P/B 3.6). (P/B is fine for newer companies and most financials; but even Warren Buffett has given up talking about P/B for BRK, although others continue to do so.) (By @LewisBraham at MFO)

EXTRA1, FUNDS. Now BlackRock/BLK has core-plus active ETF BRTR (earlier, multisector BINC). It will be a cousin of its OEF MDHQX / MAHQX (NTF/no-load at Fidelity and Schwab). Vanguard also introduced core VCRB and core-plus VPLS. (Of course, active bond ETFs have been around for years – BOND, FBND, TOTL, etc, so these late entrants are just catching up, but making noises about a new ETF revolution that is in the active equity ETFs, not active bond ETFs.)

EXTRA2, FUNDS. There is always hope that stock-pickers will do better. Several active large-cap OEFs are mentioned – CGWRX, DODGX, HHDVX, HWAAX, LGVAX, MRFOX, OAKLX, OAKMX, SVFAX.

EXTRA3, FUNDS. BREAKING News – Allocation 60-40 has been found alive again, this time by Vanguard. (of course, Vanguard also has a very comprehensive and solid lineup of allocation funds).

RETIREMENT. Fidelity says that 20% of retirees haven’t yet taken their RMDs. Deadline is 12/31/23 (really, 12/29/23 this year) and there are stiff penalties for missing RMDs. They are based on prior yearend balances and some consolidation rules apply. Several firms offer RMD services. Those who don’t need RMDs for expenses may consider QCDs that don’t flow through income.

(EXTRAS from online Friday that didn’t make the weekend paper version)

Comments

  • CrashCrash
    +1, yogi!
  • Observant1
    Thanks, yogi!
  • WABACWABAC
    The third graf seems wildly optimistic. Maybe the Fed wants back in the business of keeping zombies alive with easy money.

  • yogibearbullyogibearbull
    SEC loses in court to hedge funds.
    https://www.thinkadvisor.com/2024/06/05/sec-hedge-fund-fee-disclosure-rule-struck-down-by-u-s-court/?utm_source=dlvr.it&utm_medium=twitter
  • rforno

    “highly sophisticated” investors = what a joke of a concept to describe inestors. Most of 'em aren't any better investors than MFO regulars, except that they have deeper pockets and play with OPM instead of their own.
  • BaluBalu
    edited June 5
    This SEC has been a disappointment. They are just entertaining themselves with small stuff and missing big stuff like SBF. The whole Alameda and FTX complex was allowed to continue until market forces took them down. One may say prior SECs were not a prize either, given how they missed Madoff, MCI-WorldCom, Enron, Jon S. Corzine firm, etc. and only market forces took them down. If you pay SEC for what they catch and levy a penalty for the stuff they miss, they would function better. They are too busy thinking about their careers after SEC.
  • rforno
    BaluBalu said:

    This SEC has been a disappointment. They are just entertaining themselves with small stuff and missing big stuff like SBF. The whole Alameda and FTX complex was allowed to continue until market forces took them down. One may say prior SECs were not a prize either, given how they missed Madoff, MCI-WorldCom, Enron, Jon S. Corzine firm, etc. and only market forces took them down. If you pay SEC for what they catch and levy a penalty for the stuff they miss, they would function better. They are too busy thinking about their careers after SEC.

    +1 .... and that's before you throw in politics into the mix as well. :/
  • Mitchelg
    All the front running, Ponzi schemes, triple leveraged ETF's, leveraged single stock ETF's and on and on. Gensler is so out of touch. When this crapola blows look out.
  • CrashCrash
    "...The SEC under Chair Gary Gensler has been tightening its grip on private funds, and the rules were aimed at bringing increased transparency to a burgeoning industry known for its opaque and complex layers of fees..."

    5th Circuit Court of Appeals. New Orleans. Full of feces. Idiots.
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