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David, outstanding commentary. So much to read and study. Thank you. I don't know but I would think emerging markets equities and bonds are closely correlated? Also, ODMAX which is closed to new investors, would be on that list if opened.
David, Thank you very much for the Sept commentary and for sharing with your readers. It was very well done. I have been considering a few of the funds mentioned myself and will plan to post an update soon.
Beck, Mack & Oliver Partners Fund BMPEX seems like a very interesting fund. I like the combination of high management stake, all-cap flexibility, concentrated portfolio, and concern for risk. Most impressively, it's expense ratio is very attractive at 1.01%.
I'm curious what others think about this fund. I see some similarities with some other funds I hold, so I'd probably have to exit one of my current holdings to make room for this one.
Reply to @Ted, you might like this one now, the old Gift Trust fund makeover. Has done quite well since then. I bought this as gift trust, starting about 28 years ago and again 4 more times. My first grandson cashed his in about 7 years ago which became over $5000 from $500. The other grandkids still have theirs. http://quotes.morningstar.com/fund/twgtx/f?t=TWGTX
Reply to @claimui: I know it's an odd attraction, but the fact that Mr. Wyndra must convince four senior partners to buy a security for their own clients (uhhh ... rich people which whom they've had long relationships) before he can buy it is really intriguing to me.
I think I'm going to try to arrange a conference call with him in October. He came across really well: clear, energetic, smart and self-effacing. We had a funny exchange in which I asked him about his relative performance in 2013, which I described as "reasonably sucky." He started laughing and allowed that every morning when he looked in the mirror, he used substantially harsher language than that.
Reply to @Art: Everything is relative. Yes, the fund was down -(42.04%) in 2008, but 2008 was a bad year for the stock market. That year the S&P 500, PMPEX, benchmark was -(37.00)% and the LCB Category -(37.79)%. Regards, Ted
OK. If one is considering purchase of BMPEX then there are 2 funds I also like that deserve a look. BPAVX and CFVLX. There are similarities such as asset size and total 3 year return with lower losses in 2008 and all are considered LC by M*. Just sayin...
In 2008, the fund was a limited private partnership (i.e., under 100 investors) run by a different partner at the firm. He was the founding manager (1993) and, I had the sense, one in the latter stages of his career. As Ted notes, the loss was not out of proportion to what you might see in a large core fund but something catalyzed the change of form and management in the following year.
If we get Mr. Wyndra on a call, perhaps we might raise the question with him?
Reply to @Art: Hi, again. The Boston Partners' fund is very fine but a bit out of our normal coverage universe (small and/or new - it's over a half billion and has been around 11 years). I'm not familiar with Commerce Value, though I admit that its portfolio is sort of striking - 3 stocks at 4%, 3 stocks at 3%, and three dozen at 2% each.
I keep several watch lists of funds I like. In the stock mutual fund category I screen for < 50 stocks, long term performance with manager to match and other criteria.
CFVLX has good 3,5, and 10 year performance ranking in its category with same manager. Also has a 3 year standard deviation under 12 plus fund yields a dividend near 2.5% with an expense ratio of .70%. What's not to like.
Available NTF at Fidelity and Vanguard which is important to me.
Thanks David for another excellent commentary. I enjoyed the Buffett quotes from back when he had stuck to investing and had not yet been absorbed by the political entity and discourse of today.
For me, when I read all these anti-emerging markets articles, it is a clear sign to hop on the EM bandwagon or add to what you have. That is exactly what I did.
I am a big fan of American Century but they did drop the ball big time on GiftTrust. Those who are locked in are getting a raw deal.
Folks, read David's EM commentary again, and again. This is so important. Herd mentality is screaming run, run from EM. But the numbers are screaming buy, buy. Is now the 'right' time to buy more (or any) EM? Only time will tell. But the charts David uses at least say that EMs are a much better value at this moment than domestic stocks. If you subscribe to the theory of rebalancing your portfolio on a regular basis, consider what David says.
If I read David's chart right, this is the ninth time in 15 years we've reached these p/b levels in emerging markets. Out of the last 8 times we've seen 2 subsequent 50% declines, a 25% decline, a 15% decline and a 10% decline (approximately). I wouldn't deny that emerging markets are cheap right now, but I don't think we can describe them as "screaming buys".
Reply to @Vert: Yep. The "best prices in a generation" can, as we discovered five years ago, occasionally become "the price prices in a half century." As I (try to) point out in the essay, prices have twice dramatically overshot and have on the other three occasions modestly overshot and rebounded. Someone might know which is likeliest but I don't pretend to.
Comments
I don't know but I would think emerging markets equities and bonds are closely correlated? Also, ODMAX which is closed to new investors, would be on that list if opened.
Thank you very much for the Sept commentary and for sharing with your readers. It was very well done. I have been considering a few of the funds mentioned myself and will plan to post an update soon.
ODMAX Manager: 08/16/2004 — 04/30/2007
M
I'm curious what others think about this fund. I see some similarities with some other funds I hold, so I'd probably have to exit one of my current holdings to make room for this one.
Regards,
Ted
M* Snapshot Of BMPEX: http://quotes.morningstar.com/fund/f?t=BMPEX®ion=USA&culture=en-US
http://quotes.morningstar.com/fund/twgtx/f?t=TWGTX
http://online.wsj.com/article/SB10001424052970203687504576655152479572910.html#printMode
I think I'm going to try to arrange a conference call with him in October. He came across really well: clear, energetic, smart and self-effacing. We had a funny exchange in which I asked him about his relative performance in 2013, which I described as "reasonably sucky." He started laughing and allowed that every morning when he looked in the mirror, he used substantially harsher language than that.
As ever,
David
David, That 2008 loss of over 42% is huge. If you talk to Mr. Wyndra ask him about that.
Art
Regards,
Ted
OK. If one is considering purchase of BMPEX then there are 2 funds I also like that deserve a look. BPAVX and CFVLX. There are similarities such as asset size and total 3 year return with lower losses in 2008 and all are considered LC by M*. Just sayin...
Art
In 2008, the fund was a limited private partnership (i.e., under 100 investors) run by a different partner at the firm. He was the founding manager (1993) and, I had the sense, one in the latter stages of his career. As Ted notes, the loss was not out of proportion to what you might see in a large core fund but something catalyzed the change of form and management in the following year.
If we get Mr. Wyndra on a call, perhaps we might raise the question with him?
David
I missed the fact that Mr. Wyndra started managing BMPEX in 2009. Details.
Still like the 2 funds I mentioned along with so many others.
Art
What drew you to it? What strikes you about it?
Curious and grateful for the lead,
David
I keep several watch lists of funds I like. In the stock mutual fund category I screen for < 50 stocks, long term performance with manager to match and other criteria.
CFVLX has good 3,5, and 10 year performance ranking in its category with same manager. Also has a 3 year standard deviation under 12 plus fund yields a dividend near 2.5% with an expense ratio of .70%. What's not to like.
Available NTF at Fidelity and Vanguard which is important to me.
Art
For me, when I read all these anti-emerging markets articles, it is a clear sign to hop on the EM bandwagon or add to what you have. That is exactly what I did.
I am a big fan of American Century but they did drop the ball big time on GiftTrust. Those who are locked in are getting a raw deal.
Thanks again.
I enjoyed the report!
Any chance for an interview with Amana Developing World Fund? I'd be curious how they see things right now.
I pay a modest amount for M* premium membership, and an additional fee for their Dividend Investor newsletter. I derive value from both.
Frankly, I have gotten as much value from your website as either of these items I had previously mentioned.
You really should either charge a modest annual fee, or be more up-front in regards to "donations" to the cause.
Regards,
Ted
https://www.paypal.com/us/cgi-bin/webscr?cmd=_flow&SESSION=WmCSa_7XWdKy73J11dtDRUutuI_U3gc48Gs8_LFOb3XbBpOzbWMcCdSEnWO&dispatch=5885d80a13c0db1f8e263663d3faee8d48a116ba977951b3435308b8c4dd4ef1
Stan
3 Trustees are from GS. Manager does have ownership.
For what it's worth,
David