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.
I recommend the Good Harbor US Tactical Core fund. They have been operating via a managed account since 2003 and recently introduced a mutual fund wrapper.
http://www.goodharborfinancial.com/GHUSTCoreA_Current.pdf
Reply to @fundalarm:
I agree with you. My comments regarding the pocket of inflation were to state the author was wet behind the ears and his credibility for the entire article is in question.
Personally speaking I think the author is inaccurate in his assessment. I do not like the limitations of the Pimco universe either. One of the author's biggest inaccuracies is that they failed recently in a pocket of inflation. We had a period of fa…
Many bottoms up investors changed their ways after 2008 (einhorn for example). Are these guys just taking advantage of the human weakness on being interested in what has worked recently?
Reply to @andrei:
I have nothing further to say and we will agree to disagree. Good luck
By the way my advisor has access to the institutional shares. Most RIA firms do and from my perspective it's worth paying the 50 bps for access
Reply to @andrei
Hi Andrei, in response to your comments:
1) The appropriate comparison is WABIX. The A-share has an ER nearly 50bp higher. WARDX is the admin class with an ER in between I & A shares. WABIX is the institutional share.
2) …
Reply to @Charles:
Risk parity is simply jargon for leveraging bonds. Is this a good investment at current interest rates? In my opinion it's more of a spin on so-called asset allocation. Bond prices went up so risk parity strategies made money. I…
Reply to @hank:
Hi Hank,
The article you reference is quite lengthy and do not have time to address every element. However, I posted this in another thread and will repeat it here. IMO, The worst possible scenario for PP is probably rising real ra…
Reply to @andrei:
FYI, GMO’s strategy for the GMO Benchmark free (Wells Fargo Absolute) is not one of high turnover generally, but can appear that way depending on the prevailing strategy. It’s tax efficiency will also vary. They could be holding …
Reply to @Skeeter:
Hi Skeeter,
My pleasure. Please keep in mind that this fund is also a fund of funds type structure so there is a layering of fees. Despite this the performance has been really good, IMO. It truly is all about mean reversion and…
Reply to @Skeeter:
Again, the core investment philosophy of GMO is that things revert to their mean over time. Basically, asset prices can diverge for short or even long periods of time from their long-term average rate but the further they diverge…
Reply to @Skeeter:
Allow me to clarify. I always encourage an investor to get as familiar as possible with the manager and their style. This GMO fund will not go aggressively short and will take minor hedging positions. IMO, hedging is much differ…
Investors have abandoned gold and gold equities over the past year based on a misunderstanding of how prices respond to monetary expansions, while the continued actions of the Fed and other major central banks are increasing the likelihood that the …
Three years ago gold was trading at about the same price it is trading at today.
Three years ago GDXJ was trading at over $26.00 a share.
I would say that GDXJ has probably overreacted with its 65% decline in share price compared to June 2010 pric…
I'd like to add this about the PP. The worst possible scenario for PP is probably rising real rates (especially rapid ones not based on growth ). If one believes that is in the cards the PP will have a tough time. I think the name says it all. It …
Reply to @catch22:
FYI. Yes there are indeed forum members that understand the approach. I'm sorry to hear that you abandoned the PP. several others have done the same lately due to its recent 9% decline from peak to trough. Being the contrarian I…
Reply to @Investor:
Yes, perhaps a wrong choice of words. My apologies.
Please be careful about risk parity. It will be very interesting to see how they hold up in next major decline.
Reply to @Maurice:
Thanks for taking the time to comment, much appreciated. I was truly not trying to insult anyone on this forum as I think the people here are great and its an excellent medium to exchange ideas. I guess my barbs were designed t…
Reply to @catch22:
I do not think an allocation greater than 10-15% is wise to invest in any single strategy, no matter how great it is or the manager.
Reply to @MikeM:
I'm referring to their Alphasector premium managed account. There is a MF wrapper now but only a year or so old. The managed account has long track record.
http://f-squaredinvestments.com/wp-content/uploads/2013/01/AlphaSector-P…
Reply to @catch22:
Hi Catch,
FYI. The managed account versions of these funds are available through TD and Schwab. I agree with you in that the loads are high and plan to invest in the institutional shares through the inst platform
Reply to @scott:
I hope whatever flexible portfolio you administer is capable of dealing with deflation, inflation, recessions and prosperity. From what I've seen not many are structured to handle deflation and recessions.
Reply to @scott:
The Good Harbor and F Squared funds have been operating as managed funds for years. The mutual fund is simply a new wrapper but same exact investment strategy. They both excelled in 2008!
Reply to @MJG:
MJG,
My apologies if I came across as critical as I certainly appreciate this forum and those that participate. I'm concerned that many investors buy into equities without regard to fundamentals and valuations. As I've stated previ…
Reply to @scott:
Scott,
I'm quite familiar with Meb Faber's GTAA and his white papers on his 200 dma strategy. Although there is nothing magical about them both the Good Harbor and F Squared funds have been operating as managed funds for quite so…
Not to appear negative but was hoping for more constructive feedback. Oh well all the thoughts are appreciated. I'm looking at adding a TAA component to give the portfolio more lift in up markets while still offering downside protection. Will post…
Mike,
IMHO, the participants here are overlooking one of the best alternative funds out there. I dislike that they use the term "absolute" in the fund description as they do not go short. The Wells Fargo Absolute Return fund is managed by one of th…
Reply to @scott:
Scott- I hear what you are saying however investors appear to be in the middle of a desperate search for yield, and this has driven up the price of nearly every asset with a yield perceived to be "safe" and even many assets that a…
Reply to @scott:
Scott,
You are right about the Wells Fargo- GMO fund. Here is the performance and it declined 12% in 2008. This is what makes me wonder if the team at GMO cannot get it right, who can? I am curious to hear your opinion of the G…
Max,
Thanks for taking the time for the kind reply. I'm 43, married with two young children. We are entering our peak earning years and are saving primarily for retirement which is 20+ years away. I've realized that we cannot tolerate lots of vola…
