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RiverPark Strategic Income Fund now advised by CrossingBridge Advisors
RiverPark Strategic Income Fund now advised by CrossingBridge Advisors. The transaction between RiverPark, Cohanzick, and CrossingBridge closed the transaction as disclosed in ENDI Corp 10Q under subsequent events. CrossingBridge Advisors in 100% wholly-owned by ENDI Corp (OTCBB: ENDI) in which David Sherman is deemed a controlling shareholder.
Thank you for the update! While you probably are restricted from making any disclosure prior to a SEC filing as to whether the Riverpark Short Term High Fund will also be reorganized into a CrossingBridge Advisors?
I owned RPHIX for several years, as a "cash alternative" fund, but no longer own it. In a market where fixed income instruments were unattractive, I thought RPHIX was a historically attractive option, but now there are more attractive options available. I have never owned RSIIX, but I maintained it on a watchlist for a long period, and was impressed with its performance trend. I hope both funds continue to do well going forward, but I am not a buyer for now.
During the last 6 months, RPHIX gained $2.84%. If it continues, this will be 5.7% per year with minimal risk. If not a secret, can you tell us about better opportunities that you see now? Or do you have in mind what may happen with other funds when the rates go down?
During the last 6 months, RPHIX gained $2.84%. If it continues, this will be 5.7% per year with minimal risk. If not a secret, can you tell us about better opportunities that you see now? Or do you have in mind what may happen with other funds when the rates go down?
As I stated, I used RPHIX as a "cash alternative....in a market where income instruments were unattractive". RPHIX is a Bond OEF, with no protections for my cash, and any projections about it performing nice and smoothly for the next 6 months, is a guess and a gamble. My preference for "cash alternative" investments, with some protections, are CDs paying over 5% and MMs paying close to 5%, both of which are much more protected and secure than a bond oef, that may or may not preserve my principal as a "cash alternative".
My choice for an investment, for my cash, is based on my personal circumstances and criteria, for various components of my portfolio, and I do not tell anyone else what they should do, to meet their personal circumstances and investments for their cash.
Only m-mkt funds and T-Bills are "cash" alternatives. No other fund, including the ultra-ST bond funds, can formally serve that purpose.
But many posters do use ultra-ST and short-terms bond funds for liquidity. I was surprised that several ST bond funds in 2022 (possibly the worst year for bonds) had drawdowns of -10% vs -5% that could be expected.
Concur with @yogibearbull on the risk of short duration bond funds in rising rate environment. Bond price falls as interest rate rises and there is NO hiding place. The same risk is lessen this now now that most of the rate hike is coming to an end, hopefully.
Yogi: "Only m-mkt funds and T-Bills are "cash" alternatives. No other fund, including the ultra-ST bond funds, can formally serve that purpose."
I guess I respectfully look at this a bit differently than stated above. Cash is an asset class that requires some decisions, with risks and rewards. The most obvious form of cash are bills and coins, that you carry in a billfold/wallet, in your pocket, or stash in a some other designated spot (mattress, refrigerator, envelope in a drawer, etc.). It is pretty liquid and accessible, but there are "risks" with this choice--easily stolen, can be destroyed in a fire, hard to find in that hole in your backyard, etc. There can be practical limits to "how much" cash can be stored in those locations as well.
Then there are those "safe" locations in banks/credit unions, etc. in the form of checking accounts, savings accounts, safety deposit boxes, CDs, etc. These have comply with the restrictions of these institutions, not always instantly accessible in any amount, vary as to their ability to generate interest and "grow", and can not exceed certain amounts to be protected under FDIC, NCUA, etc. For the past few years, bank/credit unions paid next to nothing and that "cash" did not significantly increase in value. Recently, we have had some banks failing and some accounts exceeded government protection limits.
If your criteria for where you put your cash, was in your wallet, backyard hole in the ground, envelope in a refrigerator, or in a bank or credit union, there are risks and rewards that had to be understood and accepted with that decision. When you start looking for where else to put that cash, there are different kinds of risks/rewards with those decisions. As an investor for most of my adult life, I was faced with other forms of alternatives for my cash, some much more risky than others, some with much more rewards than others, but many of them heavily recommended by various financial advisors as an important and necessary choice for what I would be experiencing in the future. I had to learn certain skill sets to help identify the risks and rewards of those investments, and steps available for me, if investing/market conditions started changing. For me personally, I held a very large percentage of that cash in equitiies when I was younger, but when I got older I was adjusting those asset options for my cash, to be more income oriented options, such as bond oefs in a falling interest rate environment.
In the past year, I used my skill sets, to reassess where I wanted to put my cash, and when the market became more volatile and risky. I sold my most volatile and risky (largely defined by Standard Deviation criteria promoted by M* definition of risk). I held on to less risky (less volatile and lower SD) investments, such as RPHIX, but I dramatically started reducing the amount in those bond oefs. I found myself holding a large amount of "traditional" cash in banks and brokerage accounts, but earning no interest and exceeding government protection limits. Then interest rates started dramatic increases, and all of a sudden I was finding interest rates for MMs, CDs, Treasuries, etc. very competitive with what I had been previously with funds like RPHIX. I chose to liquidate my holdings in RPHIX, and shifted that "cash" to MMs and many CDs within FDIC protection rules.
I apologize for this lengthy explanation of my concept of "cash", but it makes sense to me, but maybe not for others! Each individual investor can establish their criteria for what they do with their cash, and of course that will vary tremendously.
I am familiar with broader definitions/interpretations of "cash". People can call anything whatever they feel like.
But in this thread, with the OP operating under regulatory constraints, and often repeating that his funds are NOT cash-alternatives or m-mkt funds, I thought that formal terminology should be used. So, formally, "cash" or cash-equivalents are T-Bills, m-mkt funds, bank checking/savings accounts, money hidden in bank lockers or buried in the backyards (-:).
I never used the term "cash equivalent" in my posts. My use of the term "cash alternative" was in response to another poster, "finder", who asked me what I had chosen as an alternative to RPHIX. I went into some detail, operationalizing a definition of "cash alternative" and made it very clear that RPHIX was a bond oef, "with no protections for my cash" and "any projections about it performing nice and smoothly for the next 6 months, is a guess and a gamble". The only statement I read in this thread, regarding RPHIX, from the OP was: "No change to RiverPark Short Term High Yield Fund"
@davidsherman RSIVX/RSIIX appear to no longer be available at Vanguard. A couple of weeks ago, they were listed under Riverpark funds, but I could not place an order presumably due to the change in advisor. Now they have disappeared from the Riverpark list, but Crossing Bridge is not listed as a possible fund family. Any chance these funds will be available at Vanguard again?
Thank you for bringing this matter to the Board's attention. I will refer the matter to John Conner and I am confident the matter will be able to be resolved. Please feel free to reach out to [email protected]
Concur with @yogibearbull on the risk of short duration bond funds in rising rate environment. Bond price falls as interest rate rises and there is NO hiding place. The same risk is lessen this now now that most of the rate hike is coming to an end, hopefully.
Usually, that's the case but NOT all bond funds are equal. There are bond funds that made money this year. Of course, there is a risk, but the reward is much higher than CD/MM. See the chart(https://schrts.co/PDMXuKcd). I don't own any of the above. This is where I live and invest.
During the last 6 months, RPHIX gained $2.84%. If it continues, this will be 5.7% per year with minimal risk. If not a secret, can you tell us about better opportunities that you see now? Or do you have in mind what may happen with other funds when the rates go down?
Looks like RPHIX will wind up the year with a return in excess of that 5.7% forecast (outpacing the YTD performance of all of the CDs I purchased). Pretty admirable for a low risk, low volatility product.
Yep, as I predicted, RPHIX has a good chance to do better since the Fed blinked on Nov 1st and later even more in mid-Dec. It means rates have stabilized. It made about 1.5% since 1/1/2023 and much better than MM/CD. RPHIX is the "best" risk/reward bond fund as a "sub" MM replacement (I know, nothing can replace MM). Per M*: RPHIX has a 3 year SD=0.84 + TTM yield=5.79%. Schwab SNAXX still pays 5.42%
Comments
My choice for an investment, for my cash, is based on my personal circumstances and criteria, for various components of my portfolio, and I do not tell anyone else what they should do, to meet their personal circumstances and investments for their cash.
But many posters do use ultra-ST and short-terms bond funds for liquidity. I was surprised that several ST bond funds in 2022 (possibly the worst year for bonds) had drawdowns of -10% vs -5% that could be expected.
I guess I respectfully look at this a bit differently than stated above. Cash is an asset class that requires some decisions, with risks and rewards. The most obvious form of cash are bills and coins, that you carry in a billfold/wallet, in your pocket, or stash in a some other designated spot (mattress, refrigerator, envelope in a drawer, etc.). It is pretty liquid and accessible, but there are "risks" with this choice--easily stolen, can be destroyed in a fire, hard to find in that hole in your backyard, etc. There can be practical limits to "how much" cash can be stored in those locations as well.
Then there are those "safe" locations in banks/credit unions, etc. in the form of checking accounts, savings accounts, safety deposit boxes, CDs, etc. These have comply with the restrictions of these institutions, not always instantly accessible in any amount, vary as to their ability to generate interest and "grow", and can not exceed certain amounts to be protected under FDIC, NCUA, etc. For the past few years, bank/credit unions paid next to nothing and that "cash" did not significantly increase in value. Recently, we have had some banks failing and some accounts exceeded government protection limits.
If your criteria for where you put your cash, was in your wallet, backyard hole in the ground, envelope in a refrigerator, or in a bank or credit union, there are risks and rewards that had to be understood and accepted with that decision. When you start looking for where else to put that cash, there are different kinds of risks/rewards with those decisions. As an investor for most of my adult life, I was faced with other forms of alternatives for my cash, some much more risky than others, some with much more rewards than others, but many of them heavily recommended by various financial advisors as an important and necessary choice for what I would be experiencing in the future. I had to learn certain skill sets to help identify the risks and rewards of those investments, and steps available for me, if investing/market conditions started changing. For me personally, I held a very large percentage of that cash in equitiies when I was younger, but when I got older I was adjusting those asset options for my cash, to be more income oriented options, such as bond oefs in a falling interest rate environment.
In the past year, I used my skill sets, to reassess where I wanted to put my cash, and when the market became more volatile and risky. I sold my most volatile and risky (largely defined by Standard Deviation criteria promoted by M* definition of risk). I held on to less risky (less volatile and lower SD) investments, such as RPHIX, but I dramatically started reducing the amount in those bond oefs. I found myself holding a large amount of "traditional" cash in banks and brokerage accounts, but earning no interest and exceeding government protection limits. Then interest rates started dramatic increases, and all of a sudden I was finding interest rates for MMs, CDs, Treasuries, etc. very competitive with what I had been previously with funds like RPHIX. I chose to liquidate my holdings in RPHIX, and shifted that "cash" to MMs and many CDs within FDIC protection rules.
I apologize for this lengthy explanation of my concept of "cash", but it makes sense to me, but maybe not for others! Each individual investor can establish their criteria for what they do with their cash, and of course that will vary tremendously.
Happy Investing!!
But in this thread, with the OP operating under regulatory constraints, and often repeating that his funds are NOT cash-alternatives or m-mkt funds, I thought that formal terminology should be used. So, formally, "cash" or cash-equivalents are T-Bills, m-mkt funds, bank checking/savings accounts, money hidden in bank lockers or buried in the backyards (-:).
I don't own any of the above. This is where I live and invest.
RPHIX is the "best" risk/reward bond fund as a "sub" MM replacement (I know, nothing can replace MM).
Per M*: RPHIX has a 3 year SD=0.84 + TTM yield=5.79%.
Schwab SNAXX still pays 5.42%