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 had recommended RPHYX to every friend who wasn't being served similarly by a private account and I bet I end up doing the same with this strategy. David's work is pure alpha.
Reply to @Vert:
My distinct impression is that RPHYX' advantage is pure alpha created by David Cohanzick's research and strategy. Managing it is a ton of work. I am trusting you see the same thing here. Disclosure: long the strategy.
Reply to @VintageFreak: I own the fund as a long term diversifier in a small amount. I am very conversant with how it operates so am able to anticipate in what type of environment it will not perform well. From my perspective, his stock selection is…
Reply to @expatsp: Geoff Considine looked at such a portfolio. I believe it was composed of two year calls on EEM combined with AGG in a 10/90 mix. All the volatility is in the calls of course. Captured the vast majority of EEM's returns with a nic…
Thanks to all who addressed my point of whether changing a fund's objectives should be accomplished with shareholder approval or not. I have placed my and my family's money with FPA in one vehicle or another of theirs for over fifteen years. I in…
David-
Not a complete quote. Reading on, the managers may now change the investment objective without shareholder consent.
When a fund gives itself carte blanche, I become concerned, that is all. FPA has operated with its present objective for year…
Reply to @andrei:
You are exactly right. The fund doesn't reflect their forecasts. None of their products really do. Perhaps only Grantham's management of his sisters assets may come close. ;)
Understandably, microcap has had a very nice run off the bottom. Before investing based on past returns or metrics, I'd investigate whether the fund has actually beaten its index over a market cycle or even from point of fund inception. And I wouldn…
Ted has this correct. MJG, I find your attempt to find the truth here laudable. However, I do not agree with your analysis.
Earnings are mean reverting. Inflation/deflation deviates from stability. What is "required" to fall back to "trend" (or be…
Investor-
There is certainly some truth to that! Hussman has not been exposed to market fluctuations to a significant degree since early 2004 and for a very brief period in late 2008/ early 2009. His hedging strategy has not " worked" (hence the re…
Hank-
Sorry to disagree.
If a fund can increase its exposure to the market in times where the manager views conditions as favorable, it is by definition not market neutral. Neutral means neutral. The fund actually allows leverage in certain condi…
Reply to @Investor: I agree that redemptions pose a risk as well as NAV erosion at higher than normal levels. An unexpected default may do the trick or a market dislocation.
David S. asked this scenario of the manager and was satisfied with his an…
Hussman hates the financials so much that he refuses to own them in proportion to their SP500 weighting. When they rally hard he gets burned. Now, it doesn't take a genius to recognize this is very one sided approach. He could have owned Amex or Vis…
Reply to @Maurice: I am addressing this comment since it appears to be directed at mine. I agree that it's not the equivalent of a money market fund. I have used the word " substitute" (as David may have) which I believe carries a different meaning…
Reply to @claimui:
Hi claimu-
LSBRX does carry some risk! It is volatile as you saw during 2008-09.
Personally, I have put my money with Gundlach and Gross. I believe they can navigate what may be a difficult bond market ahead and obtain decent…
And thanks to FA and MFO for pointing out RPHYX. It has worked extremely well for me as a MM substitute. I figure the extra 2% plus that I have been earning is well worth the discernable risk.
MarkM
I would not hold this as a core bond holding. To me it is a slightly more risky money market substitute. I am okay with the increased risk (liquidity preference arbitrage for stub bonds essentially) and hold it as such(MM). I would much prefer LSBDX…
