Many people are attracted to funds managed by Arnott, such as PAUIX. They are discussed in the latest commentary by David. Perhaps I am missing something but if I understand correctly PIMIX behaves way, way better, and it looks much less risky too (thanks to Hiyield007 for attracting my attention to it long ago!). The main difference is that PAUIX may invest in anything, so now, according to M*, it shorts stocks. Perhaps this was not the best idea during the last year. Since inception, PIMIX is up 94% whereas at the same time PAUIX is up 62%. During the last year PAUIX is up 10%, after falling 5% in May, whereas PIMIX is up 20% in a nice and steady way. And it behaved much better in 2008 as well. PDI, a closed end fund which is run by the same manager as PIMIX, is rising up even much faster.
Any reason to expect that the situation is going to change in the near future?
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For the same reason, established FOFs (for example, RPSIX from Price) tend to have pretty solid neutral positions the managers tweak by only a few percentage points in either direction; I'd guess that's the future of the two Arnott sibling funds.