As I charted STATX against RPHYX, ZEOIX and MINT, I noted a supernatural steadiness to its returns. It has returned 6.5% since inception, over the same period the others have returns something in the 3.5 - 5.5% range.
David

Yes, its that "supernatural steadiness" that really caught my eye. How do these guys manage to pull off what no other MF can?

The advisor, New York Alaska ETF Management, seems to have two employees, offices on the third floor of a nice though anonymous Las Vegas building (5550 Painted Mirage Rd) and about $90 million in assets. The founder's, Ofer Abarbanel, Linked In profile identifies him as "Founder, Prime Brokerage Ltd, Aug 2000 – Present. Contact Prime Brokerage Ltd is Israel's No.1 ranked Non-Bank Secured Credit Brokerage firm which specializes in Securities Lending, Covered Bonds, TRS, CDS and Repo transactions."
The manager, Nicholas Abbate, "has significant experience in capital markets [through] various roles at Knight Capital Group," but extensively as "a market maker in NASDAQ securities and Over the Counter Bulletin Board (OTCBB)/OTC Pink Securities in various sectors." He left KCG in 2010 and, for four years, was an independent real estate investor and developer.
As I charted STATX against RPHYX, ZEOIX and MINT, I noted a supernatural steadiness to its returns. It has returned 6.5% since inception, over the same period the others have returns something in the 3.5 - 5.5% range.
No opinion or recommendation, just a bit of additional data.
David

Can anyone explain why they use managed mutual funds that cost you 1-2% to own ...
What do others think? What are the reasons to use managed funds over free ETFs?

You're starting with a number of questionable assumptions:
- that ETFs are all passively managed index funds
- that my managed funds cost over 1%
- that mutual funds (as compared with ETFs) are actively managed, or even that they cost more than ETFs
I've said before that all else (or at least ERs and transaction costs) being equal, I'll take the mutual fund format over the ETF format because I don't risk tracking error (i.e. the part of tracking error from market price not matching NAV) and I'm not charged SEC Section 31 fees.
So I'll rewrite your question as: What are the reasons to use managed funds over index funds?
Almost none of the funds I own cost over 1%. I own a number of actively managed Vanguard funds that cost around ⅓% or less. My two largest Vanguard holdings (which I've had for several years if not decades) continue to outperform; my newest (held for a couple of years) is still subject to reconsideration.
What would you suggest for small cap int'l? That's where I've had the most difficulty finding good, inexpensive funds. There's always VFSAX if one wants an index fund (or its ETF share class VSS if one insists), but one ought to be able to do better in this category. VINEX doesn't exactly excite, and ACINX has not done well for years. There are DFA funds (available through VAs, HSAs, etc.), but they're hard to get.
If one is willing to go up a bit in price, the stalwart PRIDX continues to roll along. Do you feel that index funds will do better than this?
What index fund do you feel would do a better job than RPHYX as a cash alternative? (Despite the high cost of RPHYX.)
Lots of reasons to hold managed funds - low cost ones can do well, some categories are not amenable to indexing, some funds are unique.
Still, I agree that it's getting harder to beat index funds, and over the next decade or two I'll likely shift more investments into index funds.

Based on their performance since the inception of STATX, it must be picking up a heck of a lot more pennies than the nickels being gathered by RPHYX.

Taking a closer look at this now than I did in the last thread, and I'm wondering how far off you are with that "Bernie" comment.
The strategy has echoes of RPHYX's - buying "orphaned securities; exceedingly short-term (think 30-90 day maturity) securities for which there are few other buyers."
[Than you Professor for Riverpark's fund profile: https://www.mutualfundobserver.com/2012/09/riverpark-short-term-high-yield-fund-rphyx-july-2011-updated-october-2012/]
In the case of RPHYX, the remnants are short term junk bonds that the fund manager believes have little risk of default. In contrast, STATX is picking up short term Treasuries (with presumably even less risk of default).
While both funds may be picking up coins from the sidewalk (bonds that aren't being bought by other investors), ISTM that RPHYX is picking up nickels and STATX is picking up pennies.
So how does STATX generate an SEC yield a full percentage point higher than RPHIX's, even allowing for its 1/2 percent lower fees? Especially since it is investing in higher grade bonds, slightly shorter average maturity (1.0 vs. 1.1 years), and lower duration (0.01 vs. 0.55 years)?
The only thing I see is the use of reverse repurchasing agreements, which as the prospectus states, has "a leveraging effect on the Fund’s NAV".

how the heck are these funds doing this? I know if I buy they will start tanking.
All who own this funds please thank me.
I have RPHYX, RSIVX, and FPNIX

Like @larryB, yes, political risk is keeping my equity stake lower (around 60%) than it usually is for me. The business cycle is a magnificent thing, and we should be at a good stage for equities, but I spent most of my adult life in Brazil, and political instability can really throw a wrench in the works.
If the Ds take at least one house of Congress, as I hope and expect, I think the subpoena power is going to pull up a whole lot of dirt on DJT, and we're heading to a constitutional crisis which the markets are going to detest. I personally believe Mueller will also serve up the goods, sooner rather than later, and that DJT will not go quietly.
So I've been building cash and adding to bonds funds that I consider conservative (OSTIX, RPHYX).

Agree with jojo. I think Ted laid it out pretty well for a general overview of investments.

Sorry, but exactly "how aggressive" someone is investing in retirement NEEDs information regarding how much cash that individual holds.
If I have 90% cash and 5% in PONCX and 5% in ETFs, is not aggressive. That's like saying if you take a photo of me at exactly certain latitude and longitude, at a certain distance, in a certain light, and wearing glasses that cloud vision, I look like Brad Pitt.
I think people know I don't do bonds except for RPHYX and RSIVX, but they are a smattering of my total investments. If I simply total up whatever I've invested and not in VMMXX, then I will also be an aggressive investor. Fact is I am a wimp.
Bottom line, if subject line says "here's my asset allocation", then it should say something like
40% Cash (i.e. FDIC insured)
20% Money Markets (e.g. VMMXX, etc. etc.)
20% Domestic (e.g. VTMSX)
10% International (e.g. VTPSX)
10% Fixed Income (e.g. PONCX)
Then there is also no need to say "its' aggressive" or "its not aggressive", yeah?
A post such as above would not need so many more posts following it to ask questions. But I do understand we are all bored and this is so much better than Effbooking eh?

HOBEX yield is 3%. RPHYX is 2.3%. RSIVX is 5%. And VMMXX is a "risk free" 2.0%.
I am all bonded out. So not buying HOBEX or ZEOIX for that matter. If interest rates keep rising VMMXX will keep up with it. Just does not make sense to me to go further out to make an extra % and risk a break. Wish such funds were available 3 years back.

The only TRUE bond funds I own are RPHYX and RSIVX.
If I feel "secure" and if interest rates hit 4% I might consider buying treasuries directly and holding for dear life.

If what one wants is two year treasuries, why not just buy them directly? Virtually zero credit risk, zero cost to buy, zero cost to own.
Just missed this month's auction:
https://www.treasurydirect.gov/instit/annceresult/press/press_secannpr.htm

Only because I'm no James Bond and would think buying MF would be easier. There's a reason I don't invest in individual bonds. I really don't get them. Even bond funds I don't beyond "money market". RPHYX and RSIVX are my only bond funds.

Love the board and the discussions.
Never owned a T-bond direct. Intriguing thought. Is it as easy as it sounds? Just go to the U.S. Treasury site and pay via checking account withdrawal? Minimums appear low. Would $1,000 work? How about using your Visa card for convenience? (Suspect your card issuer might not allow it).
The board does a good job reflecting investor sentiment - often right on the mark. The transition to fixed income types over past 10 years is interesting. As rates fell following the ‘07 - ‘09 market turmoil and Fed easing folks gravitated to longer term bonds which rose in value. As that play subsided they transitioned to high yield bonds which had some great years. Now, with rates on the rise, they’re looking at 2-year Treasuries.
I’m not as tuned in to the trends or willing to move money around as others. However, I have backed off from DODIX slightly over the past year, but still own (and like) it. Smart people there. And after the money market “reforms” a few years back (which torpedoed yields) I moved to Price’s ultra-short. Slightly better return than mm funds with very little duration risk.
Where next? I wouldn’t be surprised to see money market or ultra-shorts become hot items in a year or so if rates continue higher. Who knows? Re RPHYX - never owned it. I’m sure it has a place in some portfolios. The thing with me is I look at the overall risk and volatility in my mix. So adding a little more risk in one area might mean cutting back in another risky area. As long as the overall risk level is appropriate for the individual, any number of combinations might work.

what is the correct fund to buy "2year treasuries" at Vanguard? I do own RPHYX but would like to park cash across the "risk spectrum" of "short term".
I have a chunk in Vanguard Prime Money Market, maybe I can kick it up a notch.

Hi Guys,
I loved the RPHYX pick a few years ago as it was a very low risk to get upper 2% yield in a zero interest world.
However, took the position down 90% about 2 yrs ago as interest rates have steadily risen. NAV has been low mids 9.7s forever (since oct 15)
We saw that Cohanzick is an average junk bond manager when junk fell a couple of yrs ago (RSIVX which was supposedly to be slightly more risk was shown to actually be really an average junk bond fund).
When 1 yr Treasury is over 2% and a 2 yr CD is 2.8......this fund should be doing 4-5% to have a raison detre...........they "promised" 250-300 over treasuries which they aint doing.
I understood their biz model when they were doing purchases of shortterm junk that was about to be refinanced........but that time is ovah.
Do you guys think there is any point to having any money in RPHYX now?

Hi Junkster, always interested to see your posts. Care to elaborate why you aren't too enamored with RPHYX? Thanks.

The new star in the short term bond sector is HOBIX/HOBEX. Yes, high expenses because of the small AUM and only available in but a few states and hardly any brokerage platforms. Never understood the allure of RPHYX and even more so now with money market funds on their way to 3%.

@willmatt72- But it's for sure an interesting alternative to RPHYX. Now you guys have got me thinking about maybe splitting my RPHYX for the sake of diversity.

I have parked myself outside the river except for RPHYX and RSIVX.

I've never invested outright in any bond fund except for RPHYX and RSIVX. That's why I go balanced funds so I own bonds.
I don't get "investing" in bonds. Feels completely counterintuitive.

How about the fund David highlighted in this months commentary, CBLDX? The selling point, I think, is in the statement below from the commentary. If you want low risk, this might be a consideration.

CrossingBridge is an affiliate Cohanzick Management, sub-adviser to two exceptionally excellent and distinctive fixed-income funds. They are RiverPark Short Term High Yield (RPHYX/RPHIX) and RiverPark Strategic Income (RSIVX/RSIIX). RPHYX, in particular, has posted an exceptional risk-return profile: it has the highest Sharpe ratio of any mutual fund (as in: #1 out of 7000+) over the past five years and 14th over the past three.