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RSIVX vs. OSTIX 2023 Performance Contest

BenWPBenWP
in Fund Discussions
Does anyone remember the announcement in an MFO discussion of an informal contest pitting these two funds against each other? Did David Sherman propose it? As Mr. Smith says in "The Bald Soprano" of Ionesco, "I have an excellent memory, but it's short." As for me, I remember lots of things, just not the ones I need right now.

In any event, the M* chart has OSTIX solidly in the lead so far. I hope I did not misinterpret the data. Help is welcome.

Comments

  • TheShadowTheShadow
    edited December 2023
    Here you go:

    https://www.mutualfundobserver.com/discuss/discussion/comment/162166/#Comment_162166

    Titled: Strategic Income - April Commentary
  • Level5
    @BenWP - Yes, it was David Sherman who proposed the challenge. I was intrigued with following the contest, so bought equal amounts of both funds in April. I’ve been thinking that OSTIX out-performance against RSIVX might be due to its lower ER, as both funds have been consistently positive.
  • BaluBalu
    I never owned either.

    Does anyone remember why RSIVX lost quite a bit more than OSTIX during the Covid crash? What about RSIVX that prevented it from taking necessary actions to lose less? RSIVX AUM is about 1/10th of OSTIX - so size was not a constraint.

  • FD1000
    looking at a chart since 1-1-2018 (https://schrts.co/ABHTItFS), you can clearly see that RSIVX is a better risk/reward fund. I don't know what happened in 03/2020 but RSIVX had better volatility in other times. If you look at both since 1-1-2018 using PV(https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=7PR7ukI53msSeMklaEkT2N) OSTIX has lower volatility, I think that 03/2020 was so bad that it affected the LT volatility of RSIVX.
    But, for 2018-19, performance is similar but RSIVX has a lower SD.
    From 4-1-2020 to 11-30-2023, RSIVX won on performance + SD = Sharpe is almost double, see (https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=3Kn0yyPahzqRMl9wzQRoOf)
  • davidsherman
    The 2023 year is not over yet but it does appear that I will be taking Carl and team out to dinner. I look forward to the event. And, will be happy for a re-match between RSIIX and OSTIX (it was always institutional shares comparison). Friendly competition spurs the best from both of us. When we enter 2024 and the die has been cast, a reckoning will be posted.
  • Sven
    We invest with both OSTIX and RSIIX and happy to have them in our portfolio. Although both name use “strategic income” on their names, their approaches are not the same as it reflected in their ups and downs. We invest with Carl Kraufman for over 10 years; RiverPark Strategic Income is new for us and we are very happy with it.

    Going forward, I expect both funds will do well as we reallocate more from treasury into high yield opportunities with active managed funds.
  • MikeMMikeM
    ...will do well as we reallocate more from treasury...
    Same here @Sven. Been building up an investment in RSIVX the past couple months. RSIVX is NTF at Schwab but has higher exp ratio than RSIIX, which does have a TF. I'll switch and pay the $50 TF one time when I reach my holding goal.
  • BaluBalu
    Going from one class to another?

    Assuming the fund allows conversions, not all brokerages allow conversion, even if willing to pay a transaction fees for the conversion. E.g., TD once told me I have to sell one class and buy the class I want to convert to. Going from NTF to TF, they asked me to pay STR fees and then a transaction fees. Fidelity does not do that. Have not tested Schwab.
  • FD1000
    edited December 2023
    For 2024 I would go with RSIIX. The main reason: per M* TTM yield is 8.6% for RSIIX vs 5.5% for OSTIX. Yield is more of a "sure" thing, after all, if both only have the yield and not appreciation, RSIIX has 3% more yield.
    If I want better performance based on stabilizing rates and lower volatility markets, I would use bond funds in securitized, HY Munis, and multi funds, such as RCTIX.
    As usual, nothing is guaranteed.
    See below the performance, SD, and correlation
    https://www.portfoliovisualizer.com/asset-correlations?s=y&sl=3HwATkieIxH1e2mvss1TzF
  • Sven
    @MikwM, the institutional shares, RSIIX, is on NTF platform at Vanguard, whereas it is on Transaction Fee platform at Fidelity. The minimum investment was lowered to $5K, and I have been adding. YTD total return is over 9% with 30 days SEC yield 9.2%. If you wish to stay with Fidelity and you will pay $50 to get into RSIIX. Remember that you add more later for $5 each trade using their “automatic investment” feature. Fidelity requires you to do two consecutive buys, but you can cancel the second one before the buy date. Learn this from @msf awhile back.
    https://investor.vanguard.com/investment-products/mutual-funds/profile/rsiix.

    Each brokerage have their own policy on buying and selling OEFs, so it pays to check out their difference. Vanguard offers fewer number of funds than Schwab and Fidelity, sometimes you can get into institutional shares with less than $1 million. We invest with PIMIX that requires $25K.
  • BaluBalu
    edited January 3
    For the first day of the New Year, OSTIX -0.27% and RSIIX -0.707%.

    Edit: sleepy eyes typo corrected.
  • FD1000
    BaluBalu said:

    For the first day of the New Year, OSTIX -0.27% and RSIIX -0.7%.

    RSIIX is not correct. It is 0.07%, not 0.7%, and much lower than OSTIX

  • davidsherman
    Just an update. I beleive the post for RSIIX vs OSTIX challenge was on the weekend on April 22m, 2023 (but the MFO can determine). The performance contest was written for the next 12 months with David Snowball determing the winner based on attributes (as total return may be the sole variable or perhaps a combo with volaitility) solely at his discretion. The language was "Fund is considered the best based on the next 12 months"

    Summary based on total return per Bloomberg:
    Apr 22, 2022 thru Jan 14, 2023 has OSTIX at 9.02% which is significantly leading RSIIX at 6.64%. OSTIX outperformance can be attributed to the Nov and Dec robust rally in which OSTIX captured a lot more upside. As for 3 year comparison, RSIIX is ahead and for 5 years, the two funds are neck & neck.

    Regardless of the outcome, I will enjoy the dinner and I am sure I will learn much since our styles and execution are different.
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