Reply to @msf: Thanks for that link. I wasn't aware of that discussion.
I am using Riverpark Short Term HY to hold cash for the family's short term reinvestment needs. Works extremely well for that.
To address a point made about OSTIX, I would consider its risk profile more similar to RSIVX, and I know from speaking with him Mr. Sherman does also.
Best,
Mark

Reply to @MikeM: Was concerned not for myself, but for others who missed out on RPHYX, including the poster who was asking about RSIVX as a MM fund substitute (Ack!) Thanks for the nice add here.
Regards,
Mark

Hi, guy!
Welcome.
And no.
That's the official answer, David's and mine. RSIVX has the potential for substantially more NAV volatility than does RPHYX. That's mostly a "mark to market" artifact. As you probably know, a fund's NAV is determined by answering the question, "what could I get for each security in the portfolio if I sold them today at 3:30 Eastern?" That's easy to determine with some securities; called "highly liquid," they're actively traded securities for which there are lots of buyers and lots of sellers and more-or-less reliable prices. It's a bit tougher for others ("illiquid securities," which might be rarely or never traded - imagine an entire apartment building owned by the REOC) and unreliable for still others ("distressed securities" or "special situations," where short term events distort the market for a particular security). Nonetheless, the rules say that a manager (i.e., a service hired by an advisor) must value every security every day.

It's also possible that one of the fund's securities might implode, but that worries me a bit less since David and his team are specialists in valuing this stuff and no individual position controls much of the portfolio.

There may well be periods where David could not sell some of his portfolio securities for - say - a tenth of their actual value. That doesn't bother him (or me) because he doesn't need to sell them (and I don't need to sell shares of the fund). It could, however, be a problem for someone with a very short time horizon; it's not inconceivable that some market gyration could trigger a mark-to-market drop in the fund's NAV, meaning that you might end up selling your shares at a loss.

You might want to listen to the conference call with David. Navigate using the top tabs to The Best, Featured Funds, RiverPark Short Term High Yield then check about two-thirds of the way down the page. David addresses his recommended holding period but I don't have my notes from the call here. He says something like, "if you're willing to wait a year (or some slightly longer period), we're comfortable that you'll be made whole. For shorter periods, there are no guarantees.

That's not highly probable but it's a serious distinction between this fund as RPHYX, much less a money market.
Okay: all of that having been said, my own "cash management" funds are T. Rowe Price Spectrum Income (which posted a drawdown of 15% during the '07-'09 meltdown) and the two RiverPark funds. Why? Because I'm really pretty frugal, I live well below my means and save a lot. My non-retirement portfolio (roughly half cash and bonds, half stocks) could drop by half and I'd still have the ability to cover six months of living expenses and medical bills from it. As a result, I'm more willing to absorb market risk than to book negative real returns.
Hope that doesn't muddy the waters too badly,
David

Hi Charles-
There's a discussion below pinging David asking whether RSIVX can be used as a money market substitute like the now closed RPHYX. Rather than wade into that before David has a chance to answer (poor form I think), I was wanting to know whether you had come across anything that you could fairly characterize as a somewhat viable alternative to RPHYX to suggest in this regard. Frankly, I am at a loss here.
Best,
Mark

I just started investing in RSIVX
Can this be used similar to RPHYX as a money market substitute? Performance seems better and only move .1 percent a day
Thoughts?

rsivx. read about it in one of mfo's recent profiles.

I knew that I had added a comment to that particular discussion and traced back to it through my profile page that includes a history of of my discussions and comments.I don't know how long they are archived there,but it is handy for review.(and to see how insightful my comments are at times, NOT !) Anyways,not much has changed since that discussion and this week's continuation of the actual and expected yield of RSIVX.

when all else fails you can search through google and site specific.
https://www.google.com/search?q=site:mutualfundobserver.com+RSIVX

Hi, there's a current thread on RSIVX, and I wanted to find the November (?) thread on the fund that addressed the question posed in the current thread.
However, search hits on the fund ticker don't go any further back than December. Is there a way to find an older thread?

Reply to @Vert: I see ! thanks Vert.
Regards,
Ted
Gains Distributions RSIVX
Distribution
Total
01/31/2014 10.21 0.0000 0.0000 0.0000 0.0423 0.0423
12/30/2013 10.18 0.0000 0.0000 0.0000 0.0321 0.0321
12/12/2013 10.18 0.0000 0.0004 0.0000 0.0000 0.0004
11/29/2013 10.15 0.0000 0.0000 0.0000 0.0122 0.0122
10/31/2013 10.08 0.0000 0.0000 0.0000 0.0230 0.0230

Perhaps someone could tell me if this makes any sense, because I'm hardly expert in such things:
According to Morningstar, RSIVX has an Average Weighted Coupon = 9.91 and an Average Weighted Price = 104.26. The fund also holds 71.82% in bonds and mostly cash for the rest. The fund's expense ratio is 1.25%. So can we get a decent estimate of the yield towards which it's heading with:
9.91/104.26 = 9.5 for the bonds' yield.
9.5% x .7182 = 6.82% as the fund's yield before expenses (assuming 0% yield on the cash)
6.82% - 1.25% = 5.57% for a net yield after expenses.
I suppose that doesn't take into account any trading expenses nor whatever the 'Other' category that it holds might yield, but is that calculation at all reasonable? I know that would be just a snapshot of a dynamic system since the fund keeps on buying new bonds and the old ones eventually mature, but perhaps this is a useful calculation?

I've owned this fund for a few months now and I haven't been able to get an understanding of the yield. It's all over the place. Is there a way to determine what the expected yield might be moving forward? I figured the first few months would be erratic but it should start to settle down soon?

if you get 8% in the stock market (including dividends) and you can find investments that can make you 3-6% with way less risk, with the low risk/cash part of the portfolio it makes a lot of sense.
let's look back @ SPY and RSIVX in 5 yrs.

My favorite discoveries on this board are RPHYX and RSIVX.
If your goal for a certain % of your portfolio was absolute returns with almost zero probability of loss, how would you construct that portfolio? Something like RPHYX will give u 2.5-4% in just about any market not named 2008 or 1929.

Reply to @Charles: You know since we talk offline at times I am not rubbing it in. And if emerging markets ever show any positive momentum I may be all over it and a member in good standing of Groupthinkville. Albeit, I would probably first look to see what emerging markets funds held up the best during the recent downdraft and beyond.
The most recent groupthink fund I am watching is RSIVX. Looks OK so far but I believe it has a stash in junk bonds (?) and I think junk corporates are about as overpriced as ever. Time will tell.
Edit: Then ther's OSTIX. Definitely groupthink but not a dog fund at all, although I think there are much better choices. If I am wrong about this jump all over me, but the manager seems to chase whatever is hot in Bondville. Maybe that's why it's not such a bad fund.

Looking at M*, SUBFX doesn't seem to have much of a short position, though admittedly the portfolio there is from September 30. The fund looks like it's mostly short-term high yield and cash. Mike, how do you know that it's heavily short treasuries? I don't doubt you, I'm just curious where you got the info. Looking at the portfolio on M*, it looks pretty safe against any kind of correction, especially since it's holding all that cash. But I too am wondering if RSIVX is not a better bet for what I am looking for in a bond fund: slow and steady. My equities give me all the excitement I need.

Reply to @cman: Its what I said at first, only you have said it more clearly. The constant need to tinker will drive any FA to distraction, hence my comment that a "divorce" would be inevitable. A good FA would have his best interests at heart, but the reported comment about his present portfolio performing the same functions as RSIVX and OSTIX are so flat out wrong it has me concluding that his present relationship is not worth preservation, although admittedly this is from the cheap seats and without knowing more.

Reply to @mikes425:
Ah, I meant VCSH and VFSUX might as well be consolidated. Slipped my mind that VCXH is an etf. VFIDX is certainly more sensitive to interest rate changes and you could move that to short-term if you wish. The likes of OSTIX and RSIVX would fall in between VFSUX and VFIDX (most probably) on their sensitivity to interest rate changes. They'd probably also fall in between VFIDX and your hi yield holdings on the quality scale hence the possibility of substituting one or both of those for most of what you're holding now.

Reply to @mikes425:
If you're worried about volatility, I should think that your closed end funds would be the most volatile. You probably would keep the cash, and I don't see much reason not to consolidate the two vanguard short-term funds. I'm not sure why something like RSIVX or OSTIX couldn't replace everything else. Of course, I'm a rank amateur at these things.

If he said you are already accomplishing with this mix what RSIVX is intended to do, go ahead and file the papers on the divorce now. Anyone out there have any idea what this FA could possibly be talking about?