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.
Reply to @BannedfromBogleheads: i, too, do not believe in 'risk parity'. i do believe however in diversified risk (even without the Fama reference). i think in anyone's portfolio construction, it is important to have some interest rate risk, some…
Reply to @MikeM: i think what the author (BfB) meant is called LDI or 'liability driven investing'. if you know your future cash needs, you structure your portfolio to meet those. this is a different kind of investment strategy which best fits for…
allow me to contribute my 2 c here as well, Gary:
1. the multiple references as " your people " in your original communication to Fidelity does nothing to gain you any friends; and
2. the 4-day holding period increasingly appears a blessing in disgu…
Vanguard:Preliminary for preliminary
-November 15, 2012
Preliminary capital gains estimates: List of Vanguard funds and ETFs expected to distribute taxable capital gains for 2012, with estimated capital gains figures and scheduled record date
-Nov…
Reply to @Rbrt: well, that was a one day affair. but the current premium is tiny compared to the average over the last several years. one reason is the reduced distribution yield. the fund is not leveraged as you know and invest in many global hig…
Reply to @hank: i will skip the more controversial parts of your references, but one thing should be made clear -- never in my life have i watched or contemplated watching footfall. Soccer, on the other hand.... have a good day, sir.
one doesn't attempt to "keep pace with the inflation" by investing in PRULX. One hedges the risky portion of his/her portfolio by allocating some percentage of assets to PRULX. Equity portion of the portfolio, real estate and commodity (and, more …
Reply to @Turtle: OAK is a partnership... may i ask whether you are keeping it in a taxable or a tax exempt account? I have been looking at another listed manager -- a famous distressed mortgage investor -- but couldn't figure out the operational /…
purchased JQC... it recently changed investment strategy to being a sr loan fund. since not many investors are aware of the change, this closed end fund is still trading at a discount with a yield of over 8.19% -- purely from income. all its siste…
i have to admit, this cute intro thingy is better than many in popular press. if you want to refine your case, then you should suggest owning high total return bonds out of investor's EQUITY risk budget (i.e. sell 5% S&P500 and buy hi yield bon…
ping hank... this fits neatly into our previous discussion (started by catch) about the investors flow:
"Demand from funds and institutional buyers is far outstripping the net high-yield new supply, and that’s leading people to bid up the prices.”
Reply to @hank: #2 is not in flow statistics. it is reflected in asset prices. if we (the portfolio manager back in my example) get a net outflow from this mutual fund, we need to sell equities. let's say we manage many funds and let's say we see …
Reply to @hank: i'll do it by a hypotherical example. let's say my team manages money -- a mutual fund for example with a flexible balanced or multi-asset mandate. each day investors like yourself are buying, selling and rebalancing their holdings…
Reply to @hank: mutual fund selling (because of your redemption) is a retail statistics... what 'institutional selling' to compensate your selling you're referring to?
@catch... retails investors is you and me buying mutual funds. pension funds, usually, invest via commingled funds and/or separate accounts and therefore not in such statistics. there are institutional money manager surveys run separately which ask…
it is NET equity exposure that should concern you from the asset allocation perspective. 51% should not be added to cash. When the stocks are sold short, the resulting proceeds are kept as collateral. the possibilities of underperformance of long…
Reply to @Accipiter: actually all credit levered closed end funds are burning for the second day. they have been up in geometrical progression recently and traded at record premiums to NAV. if this downward spiral continues, it will make for a mu…
Reply to @Sven: what you described are known unknowns: slowdown in earnings is widely expected and well telegraphed; China / Eurozone 'hard lending' are a possibility. These are not black swans by definition -- black swans would be unknown unknowns…
Charles, this fund is NOT "trying to protect you". This is CPI+ fund -- real asset exposure. When there is deflation expectation, it is going to plunge. If you believe in a long-term inflation, then you should have real asset allocation at least …
Reply to @VintageFreak: this is annual value congress during which managers talk about one position each which they build for a while and hold for a period of time... einhorn happened to like short positions. he is an activist and a short seller --…
:) OJ... I don't know. For me, it is not a 30-day trade. This is a yieldy investment that still has some juice. These were selling @ 20-40 c on a dollar. Even if they double, there is still value for those shops who do credit analysis. enjoy yo…
it;s interesting that d&c don't have price targets at which point to book profits or cut losses. usually, even if a favorite stock becomes too expensive, managers cut position sizes and look to re-enter at a cheaper valuation. seems here there…
thanks for posting.. yeah, now is not good time to invest in them -- with 30% in cash, after realizing most of the profits, waiting for the next big thing..
Reply to @VintageFreak: of course they'll settle... whereby JPM will pay holders of MBS (who now enjoy a huge rally) billions of dollars from its earnings. the resulting reduction in earnings will push the share price down hurting the current share…
Reply to @Investor: the cost ended up being $10/share because of Bear executives revault; and that was too much. Bear was worth as much as Lehman at the time - negative equity. but it was still March 2008 -- several months before people realized t…
Reply to @Mark: don't you need to file in each state where the pipeline runs? I know we did it for a cayman fund, and the cost of tax filing killed the entire access return.
why are you comparing small caps to large again? it is as relevant as the fact that my new car accelerates rapidly...also, "outperformed by 55%", "downside resistance"... i truly hope your post meant to be a joke.
Reply to @LarryH: banks buy treasuries hi qual munis which count towards capital - demand for which has been greatly increased due to recent regulations. banks do not buy equities -- your mutual funds buy equities.
