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They’re performance from inception, which wasn’t long ago, has been exceptional. I can’t see how I could make good investment decisions looking at such short term performance metrics that you site. But hey, if that’s working for you, good on ya, I w…
I agree, Bobby. Half in cash ready to deploy on opportunity with a current 4.4% yield AND low volatility, that’s appealing to me. Not for a huge section of my portfolio, but 5 to 10% for sure.
Thanks, msf!
After looking at this I feel better. This fund is still intact. To me, they are just being very conservative right now given the unprecedented environment, hence the huge cash allocation. If they were making a lot on cmbs pre covid but …
I definitely see what you’re saying. I’d be very interested to see what the yields were in October and November of 2019, but I can’t find that. Either way, I think we just analyze funds differently for our different expectations based on different p…
If you look at a chart showing 10/04/2019 to 01/19/2020, you see that the fund was only up about 0.73% over that 3 1/2 month period. Some periods of subpar performance would not be new for this fund. Long term is all that matters.
http://quotes.m…
No fund would be good at a 9.2% expense ratio. They’ll continue to waive it.
I agree though, that high of cash is odd, but I think it’s just inflows from people like me. Tad has been bearish. I hope his bearishness doesn’t lead him to pass up too m…
“They said that as AUM increases, the yield will fall.”
That’s what they told me would happen back in early June. AUM was around 11 million then. If AUM is up to 17, then I has increased by about 55%. Cash has increased to 36%. This was all to be e…
I’m not too concerned about 3 month performance. If this continues for a year I’ll reevaluate. They are up to 36% cash. If all that cash was invested at 4.5%, the fund would yield a little over 6%. I like them keeping dry powder in these volatile ti…
It was yielding over 20%. Of course it’s going to go down. Even if it went down by half it would yielding about 10%. As AUM increases, yield will fall. This is happening as expected. It’s also actively managed by Tad Rivelle. They may be trimming th…
For me, this is not the type of bond fund that counts as bonds in a typical "60/40" portfolio. To make room for this fund, I sold some equity. That was in part to many bond managers saying equities were overpriced, but some bond segments still looke…
BigTom, I do see this fund as aggressive for a bond holding, but I think there is room for aggressive bond funds within an overall portfolio, especially when managers like Scott Minerd are saying stocks are priced for perfection but there is still v…
BigTom, would you attribute the relatively small 5.2% peak to trough loss from 3/15 to 3/25 to the illiquid nature of many of these holdings not being priced mark to market?
With management owning about 90% of the AUM, I’m not concerned about rede…
MSF, I really appreciate you breaking it down in that detail. Would you hazard to say there is something nefarious going on? Or is it just a portfolio full of total junk?
Speaking of TSI, the discount is looking appealing today, Bobby. I'm trimming a little GOF and RCTIX to reallocate to TSI...oh, just realized its reflecting the quarterly dividend payout. Still a 3%ish discount though.
The yield in June was 1.26%, so 15% annualized...its come down some, practically no volatility in June. I allocated about 10% to it last week. After seeing how much Tad and other managers own of it, I trust it more. TCW is not Bernie Madoff.
Because of the low AUM, they own very illiquid, very high yielding bonds. The volatility of these bonds is probably much higher than what the Morningstar performance chart suggests, but due to the illiquidity, you don’t see the big price swings. I’v…
Thanks, msf
So they aren't making ROC payments. Just very good performance due to low AUM? Seems like a lot of funds have good initial performance due to low AUM. Makes me wonder why a closed end fund like TSI or DBL can't maintain great performanc…
I called TCW. They said it is because the asset base is so small. They have been able to buy a smaller number of bonds trading at a discount, therefore increasing the yield. They said that as AUM increases, the yield will fall. So I guess we should …
