CrossingBridge 4Q23 Investor Letter Commenting about a few points in the discussion:
RSIIX/COVID: We discussed in our 1Q20 Letter. I refer you to:
https://www.riverparkfunds.com/assets/pdfs/rpsthyf/commentary/RiverPark-Cohanzick_1Q20_Shareholder_Letter.pdfOSTIX: I do not view OSTIX as a competitor but rather complementary. It is the investment community (including this board) that actively compares the two funds. I think folks should consider owning both OSTIX and RSIIX rther than just one of the funds. The underlying portfolio, construction and approach are very different with some but limited overlap in holdings (in name and allocation). Yet, our risk metrics are very similar. I have a great deal of respect for Carl and his team.
RSIIX/
RSIVX: When making comparison, please use RSIIX as it is the institutional class that is most alike to others one is reviewing. For MFO participants that are interested in the lower expense institutional class (RSIIX), please contact
[email protected] and he can inform you of ways to access via direct platform via US Bank.
2022 Industry Drawdown and COVID Drawdown: Very different scenarios and RSIIX as well as all CrossingBridge products were top in performance in 2022. As for COVID, RSIIX recovery back to high water mark took (if memory serves) around 2 mos longer than High Yield Index and others, but the continued upward return lasted longer (more sustained).
RiverPark Short Term High Yield (RPHIX): The mandate is to focus as a cash alternative profile for holding periods of 6 months or longer.
Cash: Nice conversation but way more nuanced than the board in regards to the funds in our family. For instance, a called bond has a 30 day effective maturity regardless of the stated maturity and I believe Morningstar may capture in calculation provided. Other examples such as event driven status also exist and one should read our commentaries to understand. Also, timing makes a difference based on financial market calendar activity and flow of funds. In a very sarcastic voice, I just love it when we get a large inflow between Christmas and New Year.
If you want to have a more detailed conversation one on one or in a group call, happy to schedule.
Money Market Funds or Bond Funds? Thanks
@Derf. That helps.
However, I get the sense this goes beyond the simple question in your referenced quotation: (“Does anyone remember why …?”)
Here’s a couple excerpts from
Morningstar’s analysis of
RSIVX:
“David K. Sherman brings over 13 years of portfolio management experience to the table. It is encouraging to see that the strategies managed by Sherman have outperformed on a risk-adjusted basis, with an average Morningstar Rating of 4.7. Isolating the analysis to the fund at hand, David Sherman has delivered a mixed track record, leading the average category peer but lagging the category benchmark for the past 10-year period ….
“Undergoing some change … Co-founder and co-chief investment officer Mitch Rubin departed the firm in November 2022 on the heels of weak performance across the firm’s equity strategies. Meanwhile, RiverPark’s assets under management has declined 35% since December 2020 as outflows across most of its products have been persistent in recent years.”-
Since Mr. Sherman (
@davidsherman ) sometimes posts here, I’m assuming
@BaluBalu’s question is intended for him. ISTM an informal / mostly anonymous / lightly moderated forum like this may not be the appropriate setting for an extended dialogue with a fund manager. Likely, the reasons the fund did not meet
@BaluBalu’s expectations are complex. I suspect they may have already been addressed in the fund’s Annual / Semi-Annual reports from that period. In the absence of such, than it would seem appropriate for past or current clients to contact Mr. Sherman or one of his subordinates directly.
Link to M*
https://www.morningstar.com/funds/xnas/rsivx/quote
Money Market Funds or Bond Funds? I found the ? in another thread !
"
BaluBalu
December 2023 Flag
I never owned either.
Does anyone remember why RSIVX lost quite a bit more than OSTIX during the Covid crash? What about RSIVX that prevented it from taking necessary actions to lose less? RSIVX AUM is about 1/10th of OSTIX - so size was not a constraint.
RSIVX vs. OSTIX 2023 Performance Contest ...will do well as we reallocate more from treasury...
Same here
@Sven. Been building up an investment in
RSIVX the past couple months.
RSIVX is NTF at Schwab but has higher exp ratio than RSIIX, which does have a TF. I'll switch and pay the $50 TF one time when I reach my holding goal.
RSIVX vs. OSTIX 2023 Performance Contest
RSIVX vs. OSTIX 2023 Performance Contest I never owned either.
Does anyone remember why RSIVX lost quite a bit more than OSTIX during the Covid crash? What about RSIVX that prevented it from taking necessary actions to lose less? RSIVX AUM is about 1/10th of OSTIX - so size was not a constraint.
RSIVX vs. OSTIX 2023 Performance Contest @BenWP - Yes, it was David Sherman who proposed the challenge. I was intrigued with following the contest, so bought equal amounts of both funds in April. I’ve been thinking that OSTIX out-performance against
RSIVX might be due to its lower ER, as both funds have been consistently positive.
RSIVX vs. OSTIX 2023 Performance Contest Does anyone remember the announcement in an MFO discussion of an informal contest pitting these two funds against each other? Did David Sherman propose it? As Mr. Smith says in "The Bald Soprano" of Ionesco, "I have an excellent memory, but it's short." As for me, I remember lots of things, just not the ones I need right now.
In any event, the M* chart has OSTIX solidly in the lead so far. I hope I did not misinterpret the data. Help is welcome.
U.S. Money Market Funds Draw Largest Weekly Inflows In Seven Months (Story from Nov. 3) I would think in-flows into MM is good for banks, no? Sounds from this article that money from (short term) bond funds may be going into MM's, which would make me kind of a contrarian since I have been adding to RSIVX as CD's and treasuries mature.
Buy Sell Why: ad infinitum. Continuing to add minimum amounts to current positions in OSTIX and RSIVX. Waiting to see tomorrow’s 1-y and 2-y treasury auction on Wednesday. Hesitant to step foot in the secondary market for 2 and 3-y treasuries, though I’d like to lock-in these rates. Missed what appears to have been the peak last month.