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How much is too much (GPEOX)?

DGoodrow
in Fund Discussions
I am a retiree with a moderately invested 40/60 portfolio (significant mega cap domestic holdings) which as we know already has exposure to emerging market. I currently have a 5.35% allocation to GPEOX, which is my only "sector fund" exposure to Emerging Markets. I hope to open at least an equal allocation to SFGIX soon. Keeping in mind that I would really like to reduce bond exposure going forward, regarding the pending hard close of GPEOX, how much small cap is too much?

Comments

  • LLJB
    I'm not sure its possible to answer the question because it depends on too many unknowns, e.g., risk aversion, investment time horizon, need for income, etc. As far as GPEOX, I've invested more than I normally would have because of the hard close and because I would rather have to reduce my position at some point in the future than not be able to add to it if I want to. With that said, my allocation to GPEOX is 3.9%, my allocations to emerging markets and small cap stocks generally are much larger than that and my tolerance for risk is pretty high.
  • CrashCrash
    edited August 2014
    DGoodrow said:

    I am a retiree with a moderately invested 40/60 portfolio (significant mega cap domestic holdings) which as we know already has exposure to emerging market. I currently have a 5.35% allocation to GPEOX, which is my only "sector fund" exposure to Emerging Markets. I hope to open at least an equal allocation to SFGIX soon. Keeping in mind that I would really like to reduce bond exposure going forward, regarding the pending hard close of GPEOX, how much small cap is too much?

    ...I can tell you that I'm retired, too---but early. Wife works. In small-caps we both hold two specific funds: MSCFX and NAESX. But you mention GPEOX, which is FOREIGN small-caps. That's a horse of a different color.
    In our portfolio, MSCFX = 2.41% of holdings, and NAESX is less than 1%, still.

    I don't know the particulars of your full picture, but an existing position of 5.35% in GPEOX seems enough.

    I bet PRESX will take some further beating, along with other Europe shares. If things remain tense politically in Eastern Europe and there's more killing, I may take profits at my usual time, just after the New Year every year, and add to PRESX rather than PRWCX, which is the general plan. It's cold and heartless. But all the money's dirty, anyhow. I anguish over the lives lost and the idiots who lead countries!

    Don't be afraid to "go offshore." My bonds are just 10% of holdings, now, and my domestic/foreign split in equities is about 50/50. I've held MACSX since 2003. (MAPIX is currently closed.) many of us in here hold SFGIX, too.
    "Break a leg."

  • AndyJ
    LLJB said:

    As far as GPEOX, I've invested more than I normally would have because of the hard close and because I would rather have to reduce my position at some point in the future than not be able to add to it if I want to.

    That's the approach I'm taking with GPROX, which is in soft-close mode now, adding a little bit along to get to my tolerable maximum as a hold once it hard closes. Of course by then, there may be a couple of new tempting GP funds out.
  • Roy
    My situation is much different as I am still 16 years from full retirement and my wife is 20 years away. We keep a 60/40 portfolio...we are happy with overall returns and we sleep at night. We probably keep a much higher percentage of global smallcap in our portfolio than most...approx. 20%.

    Doing the same as previous posters with GPROX as it looks like a future hard close will not allow additions to retirement accounts through 3rd party platforms such as TDA.
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