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I'm trying to use the M* Premium Fund Screener. Forget the fact I can't seem to figure out how to use it. I am trying to find funds that don't have "always invested 100% mandate". Is it possible to screen for funds with cash stakes (say) 20% +?
I have often been impressed by your posts but why not put 80% of your money that you want to invest in this high cash fund into a say a balanced fund and 15% in a short term bond fund and 5% in eithera money market fund or perhaps something more exotic
I'm guessing that VF is looking for a situation where funds may attempt to protect a bit on the downside by shifting from 100% invested to a lesser amount if they suspect that trouble is immanent.
Yes, he could attempt to do that juggling act himself with a mix of (for example) 80% of100% invested funds and 20% cash, but that would require a huge amount of time and constant attention, plus some special ANALisis methodology which he may not possess.
I have noticed an increase of cash being held in a good number of my asset allocation and fixed income funds throuh doing an Instant Xray on my funds along with my portfolio as a whole. Enough to where it has added a one to two percent increase to my overall cash allocation within my portfolio. Plus, I take most all my mutual fund distributions in cash. With this, cash can build pretty quickly within my portfolio and as I write cash now totals in the low twenty percent range.
Some of my funds with a large cash position are GIFAX (19%) ... TEQIX (15%) ... TSIAX (11%) ... THIFX (9%) ... DDIAX (9%) ... and FBLAX (8%). There are others.
OK, go to the Morningstar Premium Screener. Use the pull down menu, scroll down till you find the "Portfolio" section and the "Composition" tab. Highlight the "Composition" tab, and a little "Build Screen" Box will appear. The first pull down menu "Data"--in that 'Build Screen" box will be "%Cash" Highlight "%Cash" and then in the second pull down menu--"Condition"--in the same box, highlight ">" for greater than. Then in the third pull down menu--"Value"--highlight "Enter a Value (Number)." Another dialogue box will appear showing some stats for what the average fund in different quartiles holds in cash. That's for informational purposes only. In the existing box, you can now enter "20%." Done!
Thank you all. If my query was not clear, I am indeed looking for funds that will go cash if manager cannot find compelling ideas to invest. It does not mean I will blindly buy fund because it is cash. Just a start for research.
And yes, if I want to buy fund for trading I wouldn't care how much cash it owns. I'm certainly not asking the question because I want to invest 80% of my portfolio and then rely on manager to do it for me. Clearly that would be silly.
@LewisBraham. TYVM. Will follow your instructions. It is possible something not working properly in my browser. I was using Opera on a Mac. Serves me right for buying a Mac. I dunno WTF I was thinking.
@VintageFreak You have to make sure your pop-up blockers and Ad blockers are off for that page on Morningstar. Otherwise, the new screen window/box won't open up when you select something on the pull-down menu.
>> I am indeed looking for funds that will go cash if manager cannot find compelling ideas to invest.
I do not think I have ever edited / rewritten an mfund prospectus, surely not many, where it did not say that this was a possibility and within the fund's 'mandate'.
I imagine @LewisBraham sitting in front of at least two computers as he went through all the complicated steps on the M* site on the one and then describing what he had just done on the other in order to answer the query. This is real expertise and it's offered gratis to MFOers. I'm thankful. BTW, LB, do you trade options at the same time on a third system? Très cool!
>> I am indeed looking for funds that will go cash if manager cannot find compelling ideas to invest.
I do not think I have ever edited / rewritten an mfund prospectus, surely not many, where it did not say that this was a possibility and within the fund's 'mandate'.
And I've hardly seen a fund actually use it because the pressure to meet performance numbers is too high in a rising market
Or maybe you ONLY invest in the funds I'm trying to seek.
Anyway my search yielded 2 results I always wanted to own but was waiting for a "correction" in. Maybe I can start small in then. Will start another thread.
?? Depends on what proportion and what circumstance, right? FPACX and other FPA funds are famous in this regard, but there are others, Weitz Value IIRC, Delafield a couple years ago, some others; just google for articles.
?? Depends on what proportion and what circumstance, right? FPACX and other FPA funds are famous in this regard, but there are others, Weitz Value IIRC, Delafield a couple years ago, some others; just google for articles.
I agree, other notable examples: PVFIX 45%, ICMAX 38%, FMIMX 17%, RYSEX 12%.
Already own PVFIX, ICMAX and a smattering of FMIMX. Royce Fund I will never buy because I refuse to believe they run independently of Legg Mason and have clearly demonstrated their penchant for starting new funds no freakin' reason. Besides 12% is mere accident I feel and I really don't think they are absolute value investors. FMIMX also I'm not sure is but I bought for different reason.
So ICMAX and PVFIX are perfect examples of what I was looking for and already own them. My search yielded TILDX and BRUFX - two funds I've long contemplated buying and have been waiting for correction to buy. Needless to say been waiting for long time, but if I sell out of other funds for tax management purposes, I will most probably deploy the proceeds into these two. Another reason I haven't pulled the plug is they are not available at brokerages. TILDX at least I can buy online. BRUFX is a pain.
Ummm ... you might check the article we wrote on the subject in May and June, 2016.
When I checked the premium screener just now for domestic equity with over 25% cash, I got:
Comstock Capital Value Fund; Class A Shares GAMCO Mathers Fund; Class AAA Shares Scharf Alpha Opportunity Fund Probabilities Fund; Bullfinch Fund Inc: Unrestricted Series PACE Small/Medium Co Growth Equity Investments; Pinnacle Value Fund Frank Value Fund Weitz Partners III Opportunity Fund Hussman Strategic Value Fund Intrepid Disciplined Value Fund Day Hagan Tactical Dividend Fund Bread & Butter Fund Port Street Quality Growth Fund PACE Small/Medium Co Value Equity Investments; American Growth Fund Series Two (AMREX) Cullen Small Cap Value Fund
The list is a bit truncated because some of the Intrepid folks seem to be moving to short-term bonds rather than pure cash. ICMAX, for instance, shows as 16% equity, 18% cash, 64% bonds. That might be a more-common move now.
@Prof Snowball. Yeah I have checked that article however...
High cash stake is an accident and not part of investment philosophy and it shows in current numbers (PQUAX) Then there is too-small-fund nuisance - small funds just close without warning (BABFX) Then some are not available NTF at brokerages (Day Hagan I shares are $1000 but...) Then there is manager-too-old risk (Gabelli) Then there is too many funds in the same equity box (ICMAX,PVFIX....CUSRX too?) Then there is not much evidence high cash stake has protected the fund in DD numbers (FRKNX) Then there is meaningful manager ownership (I consider $500,000 a slam dunk)
I keep looking at that list if things changed. Lately I haven't. I actually was monitoring BABFX for the longest time even before you mentioned it the first time. However, no one wants that fund and assets are at $1.5MM now. At that point I just stopped monitoring the list altogether.
Needless, to say I'll now try remember to check again.
Iit seems to me that finding a fund with 20% + in cash is NOT a valuable find unless there is evidence that in say late 2009 or mid 2013 that the fund had much less than 20% in cash. Looking at David's list of funds I could not help noticing the Hussman fund which avoided the crash of 08 but as far as I know never turned bullish.
@jerry I was just trying to find funds that will go cash if they don't find value. ARIVX was one such fund. COBYX which I own is yet another. Not sure how one could "screen" for such funds. If you have a better way, please do share.
These are basically funds I will stay invested in even if 1929 occurs. When I'm panicking and selling everything else, I will buy more of THESE Funds. That's the idea.
I think people know I own HSGFX and HSTRX, while I don't own the fund cited in Prof's article. One day Hussman is going to be right. This is about THAT day.
@jerry I was just trying to find funds that will go cash if they don't find value. ARIVX was one such fund. COBYX which I own is yet another. Not sure how one could "screen" for such funds. If you have a better way, please do share.
These are basically funds I will stay invested in even if 1929 occurs. When I'm panicking and selling everything else, I will buy more of THESE Funds. That's the idea.
I think people know I own HSGFX and HSTRX, while I don't own the fund cited in Prof's article. One day Hussman is going to be right. This is about THAT day.
This is exactly why I own IVA Worldwide - IVWAX - it even comes with an "owners manual" - but sorry it is closed.
Gotta hand it to David. He can come up with a nice list of high-cash funds, type in their names and not comment sardonically on the ridiculous monikers these funds bear: Probabilities Fund? Bullfinch Fund? Bread & Butter Fund? As Sgt Joe Friday may have said, "Nothing but the facts, ma'am."
@briboe69, How about SGENX? I own both IVWAX and SGENX. The performance and risk profile are comparable.
A great fund, I've owned it for 20 years. I'm a little concerned about asset bloat with SGENX, so I also own FEBAX since there is a lot of overlap between the two. My four largest holdings in order are PRWCX, FEBAX, IVWAX, and SGENX. My main goal is capital preservation first, growth second, despite being only age 45.
Don't forget conservatively-positioned (I think?) BERIX, with nearly 30% cash according to M*. It just got sold to Chartwell Investment Partners last year, so who knows what changes may happen....
@Ted, would it be possible for you to clarify the basis for your statement?
I share the concern that the managers of ICMAX - having decided to not participate in the current post-election leg of the market - have created an additional level of risk in relation to timing the re-entry decision.
I am also concerned that their lack of market participation may lead to redemptions similar to those in ARIVX.
@guilhermes: Remember, unlike ARIVX the folks over at Intrepid do not have to answer to a corporate umbrella. They've always invested in this manner. Also, Eric Cinnamond used to work for Intrepid before leaving to start ARIVX. I wish he had stayed at Intrepid.
Comments
Yes, he could attempt to do that juggling act himself with a mix of (for example) 80% of100% invested funds and 20% cash, but that would require a huge amount of time and constant attention, plus some special ANALisis methodology which he may not possess.
I have noticed an increase of cash being held in a good number of my asset allocation and fixed income funds throuh doing an Instant Xray on my funds along with my portfolio as a whole. Enough to where it has added a one to two percent increase to my overall cash allocation within my portfolio. Plus, I take most all my mutual fund distributions in cash. With this, cash can build pretty quickly within my portfolio and as I write cash now totals in the low twenty percent range.
Some of my funds with a large cash position are GIFAX (19%) ... TEQIX (15%) ... TSIAX (11%) ... THIFX (9%) ... DDIAX (9%) ... and FBLAX (8%). There are others.
OK, go to the Morningstar Premium Screener. Use the pull down menu, scroll down till you find the "Portfolio" section and the "Composition" tab. Highlight the "Composition" tab, and a little "Build Screen" Box will appear. The first pull down menu "Data"--in that 'Build Screen" box will be "%Cash" Highlight "%Cash" and then in the second pull down menu--"Condition"--in the same box, highlight ">" for greater than. Then in the third pull down menu--"Value"--highlight "Enter a Value (Number)." Another dialogue box will appear showing some stats for what the average fund in different quartiles holds in cash. That's for informational purposes only. In the existing box, you can now enter "20%." Done!
And yes, if I want to buy fund for trading I wouldn't care how much cash it owns. I'm certainly not asking the question because I want to invest 80% of my portfolio and then rely on manager to do it for me. Clearly that would be silly.
@LewisBraham. TYVM. Will follow your instructions. It is possible something not working properly in my browser. I was using Opera on a Mac. Serves me right for buying a Mac. I dunno WTF I was thinking.
>> I am indeed looking for funds that will go cash if manager cannot find compelling ideas to invest.
I do not think I have ever edited / rewritten an mfund prospectus, surely not many, where it did not say that this was a possibility and within the fund's 'mandate'.
BTW, LB, do you trade options at the same time on a third system? Très cool!
Or maybe you ONLY invest in the funds I'm trying to seek.
Anyway my search yielded 2 results I always wanted to own but was waiting for a "correction" in. Maybe I can start small in then. Will start another thread.
?? Depends on what proportion and what circumstance, right? FPACX and other FPA funds are famous in this regard, but there are others, Weitz Value IIRC, Delafield a couple years ago, some others; just google for articles.
So ICMAX and PVFIX are perfect examples of what I was looking for and already own them. My search yielded TILDX and BRUFX - two funds I've long contemplated buying and have been waiting for correction to buy. Needless to say been waiting for long time, but if I sell out of other funds for tax management purposes, I will most probably deploy the proceeds into these two. Another reason I haven't pulled the plug is they are not available at brokerages. TILDX at least I can buy online. BRUFX is a pain.
When I checked the premium screener just now for domestic equity with over 25% cash, I got:
Comstock Capital Value Fund; Class A Shares
GAMCO Mathers Fund; Class AAA Shares
Scharf Alpha Opportunity Fund
Probabilities Fund;
Bullfinch Fund Inc: Unrestricted Series
PACE Small/Medium Co Growth Equity Investments;
Pinnacle Value Fund
Frank Value Fund
Weitz Partners III Opportunity Fund
Hussman Strategic Value Fund
Intrepid Disciplined Value Fund
Day Hagan Tactical Dividend Fund
Bread & Butter Fund
Port Street Quality Growth Fund
PACE Small/Medium Co Value Equity Investments;
American Growth Fund Series Two (AMREX)
Cullen Small Cap Value Fund
The list is a bit truncated because some of the Intrepid folks seem to be moving to short-term bonds rather than pure cash. ICMAX, for instance, shows as 16% equity, 18% cash, 64% bonds. That might be a more-common move now.
David
High cash stake is an accident and not part of investment philosophy and it shows in current numbers (PQUAX)
Then there is too-small-fund nuisance - small funds just close without warning (BABFX)
Then some are not available NTF at brokerages (Day Hagan I shares are $1000 but...)
Then there is manager-too-old risk (Gabelli)
Then there is too many funds in the same equity box (ICMAX,PVFIX....CUSRX too?)
Then there is not much evidence high cash stake has protected the fund in DD numbers (FRKNX)
Then there is meaningful manager ownership (I consider $500,000 a slam dunk)
I keep looking at that list if things changed. Lately I haven't. I actually was monitoring BABFX for the longest time even before you mentioned it the first time. However, no one wants that fund and assets are at $1.5MM now. At that point I just stopped monitoring the list altogether.
Needless, to say I'll now try remember to check again.
These are basically funds I will stay invested in even if 1929 occurs. When I'm panicking and selling everything else, I will buy more of THESE Funds. That's the idea.
I think people know I own HSGFX and HSTRX, while I don't own the fund cited in Prof's article. One day Hussman is going to be right. This is about THAT day.
http://www.intrepidcapitalfunds.com/media/Endurance_Fund_4Q16_commentary.pdf
Don't forget conservatively-positioned (I think?) BERIX, with nearly 30% cash according to M*. It just got sold to Chartwell Investment Partners last year, so who knows what changes may happen....
Regards,
Ted
Regards,
Ted
I share the concern that the managers of ICMAX - having decided to not participate in the current post-election leg of the market - have created an additional level of risk in relation to timing the re-entry decision.
I am also concerned that their lack of market participation may lead to redemptions similar to those in ARIVX.