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To RNCOX or NOT ???

edited June 2011 in Fund Discussions
Morn'in...........

RNCOX will close; as has been noted, tomorrow, June 30. Just may need to slap some monies in this direction. David's June write about the fund is most enlightening; as the fund is a one of a kind. For this house, the fund's investment areas are situated into areas/types of investment vehicles that we would generally not travel.

The 2.39% expense is much past any fee structure we have; but would average down for our total portfolio, which has a .73% average expense.

Anyone else taken the step to purchase before the fund closure?

Take care,

Catch

Comments

  • Did. Just saw the check show up on my bank acct so paper should be arriving soon.

    I am slowly reevaluating/reorganizing portfolio & particularly core holdings, and it seemed like a good fit in the overall scheme of things.

    The gentleman I spoke with to make sure I had all the required paper in order asked where I heard about the fund & seemed quite positive when I lot him "long time MFO lurker" ;-).
  • edited June 2011
    I have the Rivernorth/Doubleline fund and have been quite pleased with it. I do not plan to and don't have the space to invest in RNCOX, but would consider it if I had the space. That space remains filled by AQR Risk Parity.
  • Hi icyone,

    I do hope this short reply finds you doing well in all aspects and circumstances. Did do the RNCOX just now and presume the electronic purchase will pass through the system in a timely manner to provide for the actual transaction.
    I suppose at the very least, the reported dividend of the fund will offset the expense cost and the rest will be left to the skill of the managers. But, this fund will provide more different directions for our current mix; although the fund did not escape the 2008 melt.

    Interesting about the query as to where you learned about the fund. 'Course, my electronic trade did not offer a friendly human voice.

    Take care of you and yours,

    Catch
  • Hi Scott,

    I presume you mean either RNDLX or RNSIX, yes? I have/am looking at these, too. They have done well and have a rather broad plate from which to work with for tuning to the markets.

    Take care,

    Catch
  • Yep. I have a bit of RNSIX, and have been pleased with it. I probably won't add anymore to it though, and view it as a supporting player.
  • Catch,I too jumped in this week.Frankly I was surprised that you would head
    in this direction given your holdings(which I want thank you for posting and
    updating,because you've given me a lot to think about in terms of a strategy
    that seems to be working).Are you getting bullish on equities?
  • I just pulled the trigger on RNCOX at the minimum purchase for tommorrow. I decided to do it over the weekend and was waiting for a down day this week which never came. So it is now or never and I went for it prior to close. I will look to add to the position when a better bottom has formed.
  • Howdy spencer,

    Pleased to know you take a peek at the Funds Boat. I am sure the numbers are checked and some folks read when I do a full post of chit-chat.
    If nothing else, it allows others to view and ponder; as the funds mix may be rather unusal to most, a strange brew; but is real.
    Not bullish on the general equity market; as the recent dip and attempts by some to hop in is from traders and/or the machines is my current thinking. I still expect sideways movements; and of course there are always sectors going in the right direction if we can snag them at the proper time.
    Prior to June, 2008 our house was a 90% equity house; so its not that I/we don't like equity investments, just that capital preservation is the main goal and attempt to generate a decent return/risk number to get ahead and stay ahead of the inflation creep. We could have caught a much bigger ride than we did in 2009; but we are not displeased; and of course the old hindsight view is always easier, eh? Heck, the 2009 rally could just as well have gone poof in 6 months.

    As to our current equity holdings, they are a bit of a brew mix, too.

    A couple of those that may seem out of place are: FDLSX and FSAVX. The Fido Leisure fund is related to the name, but it is just not fun and games stocks. The main reason for this fund is the large cap exposure to global eats companies...McD, Yum Brands and similar. The Fido Auto is also related to the global impact upon this area. Both funds had their big runs previously, but I feel; in spite of many tight money belts in the U.S.; both the Leisure and Auto related sectors deal with a population that have old habits that are hard to break.....eating and the cars/trucks. The other side to both funds is the amount of revenue being generated outside of the U.S. They probably won't be stellar funds going forward, but I expect travel to the positive direction over the coming years.
    CAMAX is a little hot potato, but we will hold this for now. As of the last report, the majority of holdings are in energy, tech and communications service. Basically nothing in financials, which I agree with at this time.
    FRIFX is a conservative REIT fund of stock and bonds, with a decent yield.
    Other equity funds are large cap value oriented, with another multi cap blend, and some commodity related funds.

    As to RNCOX, well it is a unique fund that doesn't have a long track record; but digs into some investment areas we would not. I don't know that it would survive a market melt today any better than many equity funds (of which it is only partially an equity fund, eh?). But, the amount of money required to keep the fund holding open means that we could sell down to a low level if things got real stinky and keep it in place.

    The bond funds still are the majortiy. A few of which have a fairly narrow focus.

    SO, there are equity-income funds; and I suppose our holdings could be named an income-equity fund, with a 43% tilt to HY/HI and sprinkles of globally mixed cap and sector equities and global multi-sector bonds for the finish.

    We have not sit upon cash (15%) since 2008/2009 and don't really choose to today. BUT, we think we will wait to discover what the budget/debt ceiling wars bring within the next month before traveling elsewhere with the cash. Except if there is some strange or compelling event.

    And although some of the headline news for Greece and the Euro Zone may read to the happy side of life, the reality is that the government has voted to "officically" recognize that their credit card is way past maxed out and they need a plan in order to get help. 'Course all the funds and banks holding the Greek money bags are relieved that a default may not come to be in the next six months. The plan still has be to brought forth and actually put in place. Time will tell.

    Gosh, always something going on to keep us upon on our toes, eh?

    Time for me to have a large volume of sleep.

    Thank you for the comments and question.

    Take care of you and yours,

    Catch
  • I bought RNCOX on David's quality writeup. It appears to be doing very well with low volatility. Thank you for the info.
  • edited June 2011
    I decided against RNCOX. The idea that a specialist fund taking advantage of premium-discount differentials in closed-end funds is intriguing. However, the fund is just too expensive for my taste. I'd rather own YACKX. I know it is not the same thing but it has remarkably similar chart and has a longer history of track record.

    I wish y'all that invested in RNCOX good luck.
  • I took a flying on it. I would have invested in it if it only played the CEF strategy. I didn't really like the tactical asset allocation in addition to the CEF strategy in one fund.

    I may be purchasing the Gundlach combination though.
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