Agree with above. Price was my first mutual fund manger ever in 1989. I stuck with them thru Mutual Series and switched to MDISX. My capital gains now are such that while I am disappointed it hasn't continue to excel, it hasn't done badly so I sell a little every year.
I was excited to follow Winters to WGRNX but his performance has been really dissapponting so I sold years ago and haven't looked back

I suppose that this qualifies as a "Fund Discussion" as there are surely many funds which might provide such bonds.
There's a recent article in The Economist which has an interesting perspective on the subject. It suggests that "there is a large class of investors for whom long-dated Treasuries have an almost unique virtue. It may even include people who believe that 3% is far too low for a sensible long-term interest rate. It consists of holders of other riskier assets, such as stocks, houses (real estate generally??) or high-yield corporate bonds, who wish to hedge against falling prices in the event of a recession."
The article then mentions a few other more exotic possibilities, but goes on to say that"...buying Treasuries is less fiddly for no-nonsense investors. And this insurance policy pays 3% a year."
"Long-dated bonds offer the prospect of a bigger capital gain should recession strike." In the event of a recession and intervention by the Fed, "ten-year yields could plausibly fall to 1%, or so. Those who had bought at yields of 3% would secure a 17% capital gain. Not only would that cushion a fall in the price of stocks, it would provide the means to buy them while they are cheap."
I have to admit that I had never looked at this situation from that perspective, and I'd love to hear what anyone else on MFO has to say regarding this.

FYI: Wall Street has ridiculed passive investing for decades. The reason is obvious: Its profits—and for many firms, their very survival—are at stake. The criticism reached an absurd level when a team at Bernstein called passive investing “worse than Marxism.” The authors of the note wrote: “A supposedly capitalist economy where the only investment is passive is worse than either a centrally planned economy or an economy with active market led capital management.”
Regards,
Ted
http://www.etf.com/sections/index-investor-corner/swedroe-passive-investing-demonized

How would you like to have accounts at FlagStar bank?
Wells Fargo is exiting retail banking operations in three Midwestern states as the beleaguered company follows through on previous plans to reduce the number of locations it has open.
The San Francisco bank said Tuesday that it will sell 52 retail bank branches in Indiana, Michigan, Wisconsin and Ohio to a Flagstar Bancorp subsidiary, as well as several branches in Wisconsin.
Financial terms were not disclosed. Almost 500 employees will be get job offers from Flagstar.
Wells Fargo & Co. has said it will reduce to approximately 5,000 the branches it operates by the end of 2020.
https://www.pbs.org/newshour/economy/social-security-trust-fund-will-depleted-17-years-according-trustees-report

https://www.sec.gov/Archives/edgar/data/1614812/000116204418000369/avon497201806.htm
Avondale Core Investment Fund
(COREX)
a Series of Avondale Funds
Supplement dated June 5, 2018
to the
Prospectus and Summary Prospectus dated February 28, 2018
____________________________________________________________________________
This Supplement to the Prospectus (the “Prospectus”) and Summary Prospectus for Avondale Core Investment Fund (the “Fund”), a series of Avondale Funds (the “Trust”), dated June 5, 2018, updates certain information found in the Prospectus and Summary Prospectus of the Fund dated February 28, 2018, as amended through June 5, 2018 as described below.
The Board of Trustees of the Avondale Funds has determined that it is in the best interests of the Fund and its shareholders to close the Avondale Core Investment Fund effective June 15, 2018 (“Liquidation Date”).
Effective immediately, the Fund, pursuant to a Plan of Liquidation (“Liquidation”) approved by the Board of Trustees, will not accept any new investments and will no longer pursue its stated investment objective. The Fund will begin liquidating its portfolio and will invest in cash equivalents until all shares have been redeemed. Any capital gains will be distributed as soon as practicable to shareholders and reinvested in additional shares, unless you have previously requested payment in cash. Shares of the Fund are otherwise not available for purchase.
Accordingly, the prospectus has been amended:
Suspension of Sales. Effective immediately, the Fund will no longer accept orders to buy shares of the Fund from any new investors or existing shareholders.
Prior to June 15, 2018, you may redeem your investment in the Fund, including reinvested distributions, in accordance with the “How to Redeem Shares” section in the Prospectus. Unless your investment in the Fund is through a tax-deferred retirement account, a redemption is subject to tax on any taxable gains. Please refer to the “Tax Status, Dividends and Distributions” section in the Prospectus for general information. You may wish to consult your tax advisor about your particular situation.
ANY SHAREHOLDERS WHO HAVE NOT EXCHANGED OR REDEEMED THEIR SHARES OF THE FUND PRIOR TO JUNE 15, 2018 WILL HAVE THEIR SHARES AUTOMATICALLY REDEEMED AS OF THAT DATE, AND PROCEEDS WILL BE SENT TO THE ADDRESS OF RECORD. If you have questions or need assistance, please contact your financial advisor directly or the Fund at 1-800-564-3899.
IMPORTANT INFORMATION FOR RETIREMENT PLAN INVESTORS
If you are a retirement plan investor, you should consult your tax advisor regarding the consequences of a redemption of Fund shares. If you receive a distribution from an Individual Retirement Account or a Simplified Employee Pension (SEP) IRA, you must roll the proceeds into another Individual Retirement Account within sixty (60) days of the date of the distribution in order to avoid having to include the distribution in your taxable income for the year. If you receive a distribution from a 403(b)(7) Custodian Account (Tax-Sheltered account) or a Keogh Account, you must roll the distribution into a similar type of retirement plan within sixty (60) days in order to avoid disqualification of your plan and the severe tax consequences that it can bring. If you are the trustee of a Qualified Retirement Plan, you may reinvest the money in any way permitted by the plan and trust agreement.
**********************
Shareholders should read this Supplement in conjunction with the Prospectus, as well as the Fund’s Statement of Additional Information, each as supplemented from time to time. These documents provide information that you should know before investing, and should be retained for future reference. These documents are available upon request and without charge by calling Mutual Shareholder Services at 1-800-494-2755.
Investors should retain this supplement for future reference.

Linked below is another stock market perspective from CNBC that calls for a year end target of 2800 (single digit stock market returns with bond yields heading higher). There is an investor survey with results at the end of the article.
https://www.cnbc.com/2018/06/03/double-digit-stock-market-gains-not-in-cards-citis-levkovich-says.html

@Puddnhead: FMIJX and whatever class of Euro Pacific Growth is in my TIAA have large European holdings and mediocre performance. BCSVX, on the other hand, has done really well in European SMIDs. MOTI, the wide-moat M* index international ETF, with 56% in Europe has not held on to last year’s strong gains. The French CAC has been stuck around 5400 for what seems like eons. I would not put new dough into a European index fund, but I did trim my under-performers and add to BCSVX.

David provides an interesting profile of Centaur Total Return (TILDX). The returns, risk-adjusted, are enticing; for my part, I avoid funds with ruinous ER's (2.10%) and high turnover ratios (over 100%). This fund has saddled owners in taxable accounts with huge short-term capital gains distributions in recent years. Last year's total distribution was $1.48 at NAV of $12.90, for example. Maybe other prospective customers have seen the same drawbacks as they have stayed away.

I have always believed that a "core" fund was one upon which you built the rest of your portfolio around. It would be your largest position sometimes along with one or two others of similar size. As slick noted at the beginning of this post UMBIX - Columbia Value & Restructuring was a popular forerunner in this form of contrarian investing i.e. companies that were temporarily unpopular, underperforming or unappreciated due to some internal event/stumble by management. David Williams was the manager when I first invested in UMBIX and darn good at what he did until the style fell out of favor. I would have to say that it was a core holding of mine at the time along with FCNTX - Fidelity Contrafund and PRWCX - T. Rowe Price Capital Appreciation fund.

Thanks Lewis. I get it and saw that as I went from balls to the wall long this fund to have a small position. The issue is 2 yr treasury is 2.6% with zero risk and I would think they should be able to make 4% given small risk of capital loss here (certainly compared w/ treasury or cd)

FYI: This week, we speak with famed short seller Jim Chanos, founder and president of Kynikos Associates LP, the world’s largest exclusive short-selling investment firm.
Chanos has identified — and sold short — many of the past 3 decades best-known corporate disasters. His celebrated short-sale of Enron shares was dubbed by Barron’s as “the market call of the decade, if not the past 50 years.” He also made bets against Baldwin-United, Commodore International, Coleco, Integrated Resources, Boston Chicken, Sunbeam, Conseco, Tyco International, and most recently, Valeant Pharmaceuticals.
He explains why he believes Elon Musk’s first love is SpaceX, and that “Tesla is a zero.”
Chanos said that when he launched Kynikos, there were a few 100 hedge funds, only 20 or 30 of which generating alpha. He presently sits on a number of boards where he helps to allocate capital. Market participants have gotten better, the landscape has become more competitive, and the funds have turned into large 300-person businesses. Despite 11,000 hedge fund choices, today there are even fewer hedge funds outperforming.
He asks, via Julian Robertson, the all important question “What is your edge.” Most managers lack a sustainable edge — trading, research, deviant perception — as reversion to mean is such a powerful process.
Regards,
Ted
http://ritholtz.com/2018/05/mib-jim-chanos-edge/

@Anna, if you happen to be dealing with TRP target date funds, they offer 2 options, but to me don't explain them well. They have for instance a 2020 "Target Date" fund that does change allocation as you get older. But they also have a "Retirement" fund that holds at it's allocation.
Example:
TRRBX 2020 retirement fund 37/20/40 US stock/Int stock/bonds
TRRUX 2020 target date fund 28/15/52 US stock/Int stock/bonds

Right now he's at Vanguard. I'll look to see if they have comparable offers. Thanks.

@Anna, if you happen to be dealing with TRP target date funds, they offer 2 options, but to me don't explain them well. They have for instance a 2020 "Target Date" fund that does change allocation as you get older. But they also have a "Retirement" fund that holds at it's allocation.
Example:
TRRBX 2020 retirement fund 37/20/40 US stock/Int stock/bonds
TRRUX 2020 target date fund 28/15/52 US stock/Int stock/bonds

FYI: Already performing well this year thanks to leading stocks like PGT Innovations (PGTI), Kinsale Capital Group (KNSL), MCBC Holdings (MCFT) and Medifast (MED) — which are up 10% for PGT to 70% for Medifast — small-cap growth $121.8 million AMG Managers Cadence Emerging Companies Fund's (MECIX) managers see the market environment tilting more their way — more in favor of small-cap stocks.
Regards,
Ted
https://www.investors.com/etfs-and-funds/mutual-funds/small-cap-market-tilt-tailwind-amg-stock-mutual-fund/
M* Snapshot MECIX:
http://www.morningstar.com/funds/XNAS/MECIX/quote.html
Lipper Snapshot MECIX:
https://www.marketwatch.com/investing/fund/mecix
MECIX Is Unranked In The (SCG) Fund Category By U.S. News & World Report:
https://money.usnews.com/funds/mutual-funds/small-growth/amg-managers-cadence-emerging-coms-fd/mecix

Morning @hank
Perhaps I should forgo a late night post, when I awaken at 5am on the same day.
--- Gov't. issue bonds/bills and the spread among the yields. Yes, the 2 and 10 year yield is narrowing again, as well as the 10 and 30 year yield spread which closed yesterday at 15 basis points. This spread continues to slowly narrow from the past year; even though both yields are significantly higher than one year ago.
---Bonds corporate, LQD found about a +.50%, which is a strong positive reversal of the trend for the year so far. May be nothing more than a technical trade by the big kids; but I do watch these bonds in particular, as so many ($'s) have been issued over the past years to finance take over, acquisitions, etc.
---VIX = Technically speaking, the CBOE Volatility Index does not measure the same kind of volatility as most other indicators. Volatility is the level of price fluctuations that can be observed by looking at past data. Instead, the VIX looks at expectations of future volatility, also known as implied volatility. Times of greater uncertainty (more expected future volatility) result in higher VIX values, while less anxious times correspond with lower values. (From Investopedia)
>>>I watch VIX strictly for the above description of the sentiment of those involved in trading this area. I don't trade this, but mingle the indicator with other market factors.
You noted "new cars sales down"..... Reportedly, 1/3 of new car sales for 2017 were leases (counted as a new car sale). To this, I saw a tv crawl on Bloomberg that used car prices are down. Also, that the ads I see for new car leases continue to reflect lower monthly lease prices, and in many cases; there is no increase in "up front" money, or no "up front" money at all required by the customer. So, this market finds the production of vehicle units to continue; and one wonders how much pricing is being squeezed all the way down the distribution chain. A large "boatload" of vehicles continuing to come off of a 2 year lease and flooding the secondary markets with decent "used" vehicles, eh?
'Course, many folks enjoy the thought of driving a $60K SUV for "x" dollars a month; while in their real life, they could not afford such a vehicle with a traditional auto loan, even with the very low interest loan rate for those with a good credit rating. Also, auto companies pumping their ads that "they" are able to finance those with crap credit ratings for a new vehicle. The sub-prime auto loan area is probably more smelly than folks know or that is reported. NOT a pretty picture for this segment of the economy, IMHO.
Per Sonny and Cher..........."and the beat goes on".
NOTE for today. Trump's "plan" announce at 2pm today about his plan to reduce drug pricing. No scare reflected in yesterday's healthcare sector gains. Will discover today if pharma or other narrow parts of healthcare gets some type of negative price whack.
I've run my mouth enough.
Take care and be assured, that winter is almost gone in Michigan, yes?
Catch

@Maurice, not if she inherits these shares upon death that might reside in his taxable account...stepped up basis would avoid his capital gains (tax consequences). This is where death and (capital gains) taxes die together. We should all be so lucky.

What is 'Step-Up In Basis'
Step-up in basis is the readjustment of the value of an appreciated asset for tax purposes upon inheritance, determined to be the higher market value of the asset at the time of inheritance. When an asset is passed on to a beneficiary, its value is typically more than what it was when the original owner acquired it. The asset receives a step-up in basis so that the beneficiary's capital gains tax is minimized.

https://investopedia.com/terms/s/stepupinbasis.asp

I agree in recent years I have been stuck with large capital gain distributions in my active taxable funds due to large capital gains that have put me into a higher tax bracket I can't sell them as that would be jumping from the frying pan into the fire.

FYI: A downturn would give investors sitting on big tax gains an excuse to get out, possibly taking some $1 trillion with them.
Regards,
Ted
https://www.bloomberg.com/news/articles/2018-05-03/a-bear-market-would-be-a-death-knell-for-active-funds

With Ed just back and recovered from his European vacation, we'll publish an update soon. That is, we'll add Ed's essay - on the need by professionals investors to reinvent themselves to maintain their "edge" in a rapidly evolving ecosystem - to the May offering. It strikes me as a thoughtful piece.
I regret offering no memorial words for Marty Whitman; he surely deserves them but surely deserves them from people who knew and trusted him. I was afraid I had little more than platitudes to offer.
The Prospector fund looks interesting. I began following them when Ron Howard, the long-time manager of Price Capital Appreciation - the equity fund that had the longest-ever streak of years without a loss - left to co-found Prospector. They feel like T Rowe in a compact package.
It's good to start hearing BobC's reflections as he closes a chapter that he'd been writing for 50 years and begins another.
And I really do appreciate your input on the active share piece. I hope it was worth your time.
Take care,
David

Having cash allows for small buying this year - early Feb (9% down), March and April (5-6% down). Several funds I use have over 10% cash position. Only until recently, TRP Capital Appreciation reduced the cash to high single digit.
With treasury yielding near 3%, bond funds are struggling this year. Two or more rate hikes this year pose considerable headwind for bond funds. Actively managed funds are doing better than the bond index.