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.
BRUFX had a pretty good day today, only down -0.09% when the S&P 500 was down 1%. Their Treasury bond holdings were helpful today. I think BRUFX is a better choice than the long/short equity funds or other alternative investment funds with much higher expense ratios. The expense ratio for BRUFX is only 0.70%
Maybe You Should Call The Bruce Fund And Ask Them If They Can Register It In Your State. When I First Tried To Buy LKCM Balance Fund (lkbax) It Was Not Available In My State, So I Called Them, And They Were Kind Enough To Register It My State.
BRUFX is my Health Saving Account funding choice. Like the choices Ford offered his customers, you can have any color car so long as its black, you are always fully invested in BRUFX, no cash position. A very spartan online experience. "Bill Pay" is an electronic option for making contributions, but redemption require paperwork that has to be mailed to Bruce and a waiting period for them to cut a check. This father and son team"s performance has allowed me to feel comfortable with their "set it and forget it" investing style.
I am impressed with performance but some things not impressed with, like largest position and that father/son are managers and must invest directly with them.
@Bee - M* notes a 19% cash position. Leaving aside the fact that M* doesn't always have the data just right how does that jive with your claim of no cash position?
@Bee - M* notes a 19% cash position. Leaving aside the fact that M* doesn't always have the data just right how does that jive with your claim of no cash position?
Your right, the manager decides how much cash is held within the fund. My point is that I don't have the ability to hold a cash position within Bruce's account platform. I would have to sell (redeem) shares and have the proceeds mailed to me which would have tax consequences and isn't what I am trying to accomplish.
Let's say I know I have a health expense in the next year and I don't want to worry about how the fund is performing. I would like to hold cash within my Bruce health savings account that I could redeem at any time. Or maybe I would like to Dollar Cost Average in or out of the fund. A cash position would allow me to dca (in or out). I like controlling how exposed I am to the market. A cash position within the account lets me do that.
With Bruce, you are fully invested and the manager decide how much cash you hold.
Thanks Bee, I'm a little slow. Only one pot of coffee so far this morning. Interesting that in today's "gotta have it now!" world that these guys guys continue to putt along with checks and snail mail. That might have a lot to do with the performance numbers they are able to put up.
The Bruce Fund is definitely not an index hugger. In some ways, they use a bar bell risk management approach, combining large allocations to US Treasuries with highly distressed investments. At least three of their holdings were in bankruptcy, and some of their other energy holdings are extremely high risk and may be close to bankruptcy, but the position sizes are fairly small.
The Bruce operation is quaint, but it encourages me to leave my dough there for the duration. It's too easy to make injudicious trades in a couple of my accounts.
Comments
Harrrummmpphhhh !
Regards,
Ted
http://money.usnews.com/funds/mutual-funds/moderate-allocation/bruce-fund/brufx
Regards,
Ted
We Rent More Than Just Trucks:
Let's say I know I have a health expense in the next year and I don't want to worry about how the fund is performing. I would like to hold cash within my Bruce health savings account that I could redeem at any time. Or maybe I would like to Dollar Cost Average in or out of the fund. A cash position would allow me to dca (in or out). I like controlling how exposed I am to the market. A cash position within the account lets me do that.
With Bruce, you are fully invested and the manager decide how much cash you hold.
In any case, I'll only buy a minimum or wait...If I buy substantial amount, it will tank. I am an astrologer.