I’ve been kicking some funds to the curb this year because they have proved to be more volatile—on the downside—than I bargained for. The most recent fund to get the boot is Vulcan Value Partners.
This fund looked great on the way up. It was outperforming the S&P by a comfortable margin. But it dropped five percent this week, and has declined 20% from its high (as of November 11). That’s a bear market decline from a fund that’s supposed to mitigate risk by investing in value situations.
I know funds will have bad spells, and you have to allow for it. But I first want my funds to mitigate against risk, before they play offense.
The Wintergreen fund is another one I bought when it first opened, that had a great start, and then, starting in 2014, began a steady decline. So much for what was supposed to be a whiz manager, schooled under Michael Price, who managed the Mutual Series funds. [I know this fund hasn't been favored on this site. I'm still holding this one--waiting for a better time to sell out.]
What funds are you giving up on? What funds are looking like long-term winners, with low risk and solid returns? [I’ve owned T Rowe Price’s Cap Appreciation fund and the Mutual Series funds for decades, and that has been a blessing. But trying to find new funds that are solid performers, not so easy. Maybe Vanguard's index approach makes more sense.