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

STSEX Fund

STSEX fund is a fund that I have been watching but isn’t available at Schwab or Fidelity. Has anyone found anything similar?

BlackRock Exchange BlackRock

Microsoft Corp-33.64%

Berkshire Hathaway Inc Class B-11.94%

Comments

  • The fund status is "Closed" to all new investors.
  • The fund status is closed to all investors (see prospectus). Only div reinvestments are permitted.

    This fund was formerly a State Street Research fund (not to be confused with SSgA). FWIW, there is a sibling fund, formerly SRLAX, now MDFGX. It was created and managed in the late 90s by STSEX's manager at the time, Pete Woodworth.
    https://www.marketwatch.com/story/big-cap-stocks-state-street-manager-looks-for-return-on-capital-1-25-99

    The two funds appear to have continued using the same managers, as M* reports nearly identical teams (including changes) over the past decade. Until 2017 MDFGX's performance was virtually identical to STSEX's. Since then, STSEX has gone on wild rides (both up and down) but otherwise followed a similar trajectory. I'd guess that its huge (excessive?) bets on single stocks accounts for that.

    Both funds are extremely concentrated. However, while 1/3 of STSEX is invested in Microsoft, "only" 10.37% of MDFGX is. The latter fund is not quite as concentrated, and actually turns over stocks once in awhile (21% turnover ratio).

    If what you're looking for is a large cap 0% turnover fund, there's LEXCX. It's even more concentrated than STSEX, and like that fund, has BRK.B as its second largest holding (15.68%).
  • There is CHNTX, Chestnut Street Exchange Fund, which is also closed to investors. I have been both of the funds for years.
Sign In or Register to comment.