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.
How about examining fund stewardship by plotting growth of AUM vs. actual expense ratios paid by investors ? Looking at the latest annual report for MFLDX, this would clearly reveal poor fund stewardship by the manager and the fund board of directors. This matters to me, but obviously it doesn't pop up on the M* radar, and I'm sure Mainstay feels just like David Winters does about fund expenses.
How about examining fund stewardship by plotting growth of AUM vs. actual expense ratios paid by investors ? Looking at the latest annual report for MFLDX, this would clearly reveal poor fund stewardship by the manager and the fund board of directors. This matters to me, but obviously it doesn't pop up on the M* radar, and I'm sure Mainstay feels just like David Winters does about fund expenses.
Kevin
I wonder if a financial services company couldn't make a great deal of money by buying up hot independent funds, letting the assets bloat while holding fees fixed, then abandoning the fund (etc.) when the investing public catches on the the fund isn't the fund of old. Rinse. Repeat. Probably not a bad way to make money. If you're a fin services firm.
MFO folks know we have used MFLDX almost from its start. We have seen excellent results during those 6+ years. Mr. Aronstein uses a different approach, employing a global macro-thematic overlay. He has been right a lot more than wrong. That being said, we are very concerned with the enormous growth in assets and the continuing high expenses given the size of the fund. To be honest, we bring these issues up nearly every conversation we have. To say they are sensitive about it is an understatement.
There are much smaller long-short equity funds that have much lower expenses. Wasatch has done a very good job. MFLDX is almost 20% more expensive. Go figure. How big is too big? MFLDX is obviously a huge source of revenue for Mainstay. We have put MFLDX on our watch list. How big is too big?
I watched decided it was not for me, too expensive and not a benefit for an 80 year olds portfolio. Too much discussion. If I think I should be short the market, I should review my AA and adjust if necessary. If there is a bad down market this fund won't be your savior.
Comments
Kevin
There are much smaller long-short equity funds that have much lower expenses. Wasatch has done a very good job. MFLDX is almost 20% more expensive. Go figure. How big is too big? MFLDX is obviously a huge source of revenue for Mainstay. We have put MFLDX on our watch list. How big is too big?
Cheers.
D.S.