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

Oberweis International Opportunities (OBIOX)

edited March 2013 in Fund Discussions
Here is some of my dirty laundry...

Today, while looking at my records at Fidelity for purchase and sale dates of UTGRX (Utopia Growth) I noticed that I invested in this tiny fund for a while.

I first invested in OBIOX in 7/2008 pretty close to its launch (2/2008). Bought more 8/2008 and some more in 9/2008.

Sold the initial investment in 11/2008 and the rest in 3/9/2009 ironically right at the market bottom (what great market timing huh?) at substantial loss. I lost the 60% return in 2009.

If you look at the fund right now, it has now pretty good upside/downside capture ratio for 1 and 3 years.

Has a 3 year beta of 1.10 and alpha of 9.57 (compared to MSCI EAFE Index) and 5 year beta of 1.16 and alpha of 6.06. Pretty high sharpe and sortino ratios (even better than WAIOX on 3 year term).

So, it has delivered an exciting return to few investors who remained on the fund or invested after march of 2009. Having said that the devestation in 2008 and early 2009 must have scared a lot of people that the fund now have only $25mil invested.

Comments

  • Hello! My name is John Collins, and I am a marketing representative for The Oberweis Funds*.

    I am glad to see you are discussing The Oberweis International Opportunities Fund (OBIOX). Securities regulations prohibit me from participating in online discussions such as this one, but I would be delighted to speak to any of you personally if you contact me on my business phone or through my business email.


    John P. Collins, CIMA®
    National Key Accounts Director, The Oberweis Funds, Inc.
    Direct: (630) 577-2364 | Email: [email protected]

    *Securities Offered Through Oberweis Securities, Inc., Member FINRA/SIPC
  • Reply to @John_Oberweis: Just as a quick bit of context: a couple of you folks, Investor included, had asked me to look a bit more closely at OBIOX. (Admittedly that was a few months ago, but I'm slow.)

    John and I have been talking about the fund and he expressed frustration that FINRA regs effectively make it impossible for him to speak in a forum like this. I read the relevant FINRA regs yesterday and concluded that they aren't written in Latin just because FINRA was fearful that too many people might actually understand them then. He is allowed to (heck, anxious to) speak with folks one-on-one and I encouraged him to post a short notice of his availability.

    We're likely to have more on the fund in the October issue.

    As ever,

    David
  • The user and all related content has been deleted.
  • edited August 2013
    Reply to @Maurice: Hell, I can't believe that anyone who's been doing this stuff for a long time hasn't made the same sort of misstep at some point along the way. As far as "prestige", "talking points" or who posts a link first (BIG deal!)... I could care less. Over the weekends I'm re-reading Seymour Hershe's "The Price of Power", concerning Kissinger's employment in Nixon's White House. Enough "talking points" and "prestige" to last me the rest of my life. Sick people. VERY sick people.
  • edited August 2013
    Reply to @Maurice: Hi Mo. I liked the fund when I first invested as well. However, in the depth of financial crisis the fund not having long enough history and a large loss caused me concern.

    At the time I also had, OAKEX as another small cap with longer track record. With the portfolio getting smaller I did not see the need for two funds anymore and consolidated consolidated from two funds into one. So, I did get most of the rebound that way.

    Today, the manager of OBIOX is much more experienced. I think the fund is better positioned valuation wise as well. Both Investors and the management has learned from the experience.
  • Reply to @Maurice: I've owned NBGNX for a couple years. Great long term track record for a small-cap/growth fund, altho guess it's now classified as "Mid-Cap Growth". Is one of those that performs well on the downside (for a small cap fund), but underperforms on the way up. Haven't looked at the numbers for upside/downside capture ratios, this is just an observation in case anyone is considering the fund.
  • edited August 2013
    The reason I can't get excited about OBIOX - and many many other funds - is that the SAI for the fund provides no evidence the manager owns a dime of his fund. Mr. Oberweis himself own $100K with the disclaimer his ownership includes shares owned by OAM which has a stake.

    No sirree, not for me.

    OAKEX on the other hand shows EACH manager owning $1 Million. Here's the SAI for those who are like thinkers.
  • edited August 2013
    Reply to @Investor: I am saying/asking this not in any disrespectful manner but why did you invest in OBIOX in the first place and then later repented that mgr as well fund does not have longer track record. Didn't you know that before investing ?

    I am asking this because you seem to be quite experienced investor and a knowledgle poster here but what I don't understand is dumping non-performing fund at the first instance. This question is not only to you but everyone, who does that on this forum.
  • edited August 2013
    Reply to @Maurice: Again, don't want sound disrespectful anyone including Investor, I agree that we should commend people for their honesty in admitting their mistake but what purpose it serves if we are not learning from those mistakes.

    The forum is filled with posters, including quite knowledgible ones, dumping funds at the first instance of underperformance. Didn't we learn anything from M* statistic introdced a few years back, the investor return.

    For most of the funds, investor returns lag the total returns because investors flock a fund after its success and then dumping after started underforming, thus loosing out, and not capturing its sucess. This is espcially true for volatile funds, CGMFX being the poster child for such funds.
  • edited August 2013
    Reply to @Old_Joe: I'd say if you're right 70% of the time you're doing well. Maybe 20% fall in the "minor miss" category & 10% really rotten calls. Paid the price here for a ill-timed venture into a pm mining fund in late 2012. Took a hit - but quite insignificant in the overall scheme of things. Franklin: "To err is human....."
  • Reply to @mrc70: Hey, I still own CGMFX:-P
  • edited August 2013
    Reply to @mrc70: Obviously I knew the fund was still relatively new but come 1Q 2009 I looked at my portfolio and made a decision. Please also note that I also had invested in UTGRX which turned to be a fiasco so my confidence at such trying times was towards experienced management. Moreover, OBIOX at that time were more heavily into more expensive growth and emerging markets and OAKEX had dropped less and investing more value oriented stocks and no emerging markets. So. when my portfolio lost value it did not seem useful to have two funds and I made judgement call. Now lucky me I put most of the OBIOX into OAKEX and still got most of the upswing. It could have turned to a worse decision.
  • edited August 2013
    Reply to @Investor:

    Funny thing is that I had made this confession back in March and there was no interest. I did reinvest in OBIOX a small amount mid May and added a bit more beginning July. I intend to accumulate a lot slower this time around.
  • Reply to @VintageFreak:

    As of December 31, 2012, the dollar range of equity securities in the International Opportunities Fund beneficially owned by Mr. Scherschmidt was: $100,001-$500,000.
  • Reply to @Investor: Where did you find this? Was it hidden in the SAI?
  • Reply to @VintageFreak: It is in the SAI that you linked.
Sign In or Register to comment.