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.
Hi David. Thanks for hosting this event.
My question is, as someone who is 20 years away from retirement, what percentage of one's bond fund allocation should be allocated to the high yield portion of the market.
Second, on average, what percentag…
Hi MJG. I appreciate your efforts at making the complex simple. I believe you two questions goes a long-ways towards that.
I answered no-no. And yet, only 10% of my portfolio is passive. Why the contradiction? Do I have a split-investing personalit…
Reply to @fundalarm:
PDI is more like a hare than a turtle. Have you seen it's three-month chart?
Price = -14.62% vs. VBMFX = -3.35%
Not my definition of a turtle fund. It looks like a hare on the downside as well.
Mike_E
Update on SUBFX 30-day SEC Yield:
Per Morningstar: 30-day SEC Yield = 0.08%
Now that is for the Institutional version of the fund. Morningstar hasn't updated the retail (SUBYX) shares yet.
Wow, that is low. Maybe the fund has more cash than we k…
Thank you msf for your insightful comments. It never occurred to me to compare a similarly dated Treasury bond yield to the fund's!!!! Duh!
Much appreciated,
Mike_E
Good. I would hate to see such a young, blossoming website ruined by being bought out by a large corporation.
Keep up the great work. It is very much appreciated.
Reply to @andrei:
I'm attracted to the current discount but I'm also very wary of it, as seen by yesterday's NAV price action (-1.15%) and PDI's price (+0.88) that quickly closed the discount by 2.03%.
I'm afraid PDI's NAV will catch up (or more …
I bailed on ARIVX back in early September. I became convinced that Mr. Cinnamond's penchant for "confirmation" bias towards his large cash stake would permanently limit ARIVX's future upside. Perhaps he will be vindicated one day. After all, a broke…
Reply to @Charles:
Hi Charles. The 10% is a self-imposed limit that I learned the hard way. I overextended during the dot.com bubble and leading up to the financial crisis of 08-09. I got badly burned by investing to heavily in specific fund manag…
Great thread. What I find interesting is not just the three top funds, but their percentage in the portfolio. I'm curious to see how many investors allow any single fund to exceed 10%, which is my approximate cutoff.
My top three:
PIMIX - 11%
MWCRX…
Reply to @Charles:
I wouldn't be surprised to see a GrandeurPeak Frontier Emerging Markets fund when they decide to close one or both of their funds. They even alluded to wanting to limit the amount in light of other offerings.
Mike_E
Regarding FPA International (FPIVX):
It appears that FPIVX received an extremely large and share significant subscription (purchase) as the end of 2012 that doubled the fund's assets. The increase was so great as to completely skew the asset alloca…
Is there any logical reason to buy a bond fund that has a negative duration? Isn't that what equities are for?
The role of bonds in my portfolio is to produce income and to provide downside protection from equity funds. A bond fund that has a nega…
MFO is my favorite website and one I check several times a day for insightful comments from David and other members. David, your dedication and sacrifice are greatly appreciated.
Mike_E
Thanks Investor. I've reproduced your table in my own Excel spreadsheet. Thanks for your great clarity and example in an area that is often overlooked by average investors - What is my true return?
Thanks for your contributions.
Mike_E
Reply to @BannedfromBogleheads:
I lifted a snippet from the recent interview with Dr. Eugene Fama where he is asked about risk-parity strategy. He remains unconvinced. Here is a portion of the interview:
Litterman: What do you think of the risk p…
Thanks fundalarm for your input. I know I'm slow, but ... from an asset allocation perspective, there's a difference between being 49% long equity with 51% cash and being 125% gross equity.
Here's why: Assume the market corrects 10%. A net 49% lon…
Reply to @andrei:
Regarding the 150% investment, I often double check portfolio stats from Morningstar by going directly to the fund company. Below is a link to Pimco Income's Portfolio as of 7/31/12. Click on "Portfolio" after following the link.…
Thank you David for your great service and dedication. I always eagerly look forward to reading your monthly commentary over a cup of coffee. Keep up the great work - you are much appreciated!
Mike_E
To Mr. Cinnamond, David Snowball, and the mutual fund observer community:
I ask for your forgiveness for my coming across as a complete ass who thinks he knows better than a seasoned mutual fund manager. My bad.
Sincerely,
Mike_E
Hi everyone,
Eric Cinnamond evidently buys with conviction - he holds approximately 30 positions. And I admire that in a fund manager.
I concur that the small caps increasing 10% ytd has reduced the opportunities for Mr. Cinnamond to fund new pos…
The prospectus was filed on November 14, 2011. It says it will become effective 75 days after the filing date of 11/14/11. This puts a potential starting date of January 28, but more than likely, Jan 30 or Feb 1 since Jan 28 is a Saturday.
I'm eage…
I apologize for not being clear. I assumed a hypothetical trade and its outcome based on rounding NAV to the nearest cent. I haven't purchased any shares yet, but I intend to when the funds become available at VBS. Sorry for the confusion.
Mike_E
BOGSX- Black Oak Emerging Technology Fund.
I bought it during the dot come meltdown. Wow, I have never lost money so fast as I did in that fund. Bought in '01 and sold in '04. Painful, just painful.
Well said and thought out _AP_. And I agree. What I struggle against is with what happened to the Dallas Cowboys in the late 1990's - they held on to their aging veterans too long and suffered for it. Am I holding on to an aging veteran that has ser…
