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Professor David Snowball featured in Bottom Line Personal
David Snowball had an article featured in Bottom Line Personal (February 15, 2014 edition) titled “Actively Managed Funds with Low Volatility.” The three funds that he mentioned in the article were Cook & Bynum Fund (COBYX) … FPA Crescent (FPACX) … and, Osterweis Fund (OSTFX).
Bottom Line publishes a number of micro-articles each issue, say 150 - 500 words. This was one of those.
At base, Mark called me and said their readers were fretting about volatility and he asked my thoughts on minimum-vol or low-vol ETFs. I am, eternally, skeptical in part because traditionally low-vol sectors are bid up and undergoing structural changes (utilities, for example).
I suggested that there were three basic volatility management strategies: absolute value investing with a concurrent emphasis on cash, long-short investing, and long hedged with an options overlay.
They asked for three examples in each category (BRTNX, ARLSX, RGHVX ... )but they like larger funds with longer records, and they were a bit hesitant on hedging strategies so ...
I thought I'd bring this back towards the front of the reading lineup since it has gotten burried deep in the stack. If you enjoy this site then let someone else know by passing MFO's link on to a friend or another fellow investor. It is truly one of the best around and David has not been doing this to enrich his pockets ... form my belief. He is an educator and has a sincere desire to help others. So do your duty and pass his site on to others and let's help him expand its reading base.
Comments
Regards,
Ted
Thanks,
Ted
At base, Mark called me and said their readers were fretting about volatility and he asked my thoughts on minimum-vol or low-vol ETFs. I am, eternally, skeptical in part because traditionally low-vol sectors are bid up and undergoing structural changes (utilities, for example).
I suggested that there were three basic volatility management strategies: absolute value investing with a concurrent emphasis on cash, long-short investing, and long hedged with an options overlay.
They asked for three examples in each category (BRTNX, ARLSX, RGHVX ... )but they like larger funds with longer records, and they were a bit hesitant on hedging strategies so ...
David
Old_Skeet