The Younger Defenders

By David Snowball

A handful of young funds, by luck or design, have managed the rare feat of peer beating returns since inception with risk-rated, risk-adjusted returns (MFO rating, Ulcer rating) and risk metrics (downside deviation, bear market deviation, down market deviation).

The US stock market is approaching the most extreme valuation levels of the past 150 years, at least as measured by the Schiller 10 year PE ratio.

Investors leery of the state of the market might cast an eye in their direction.

Cells marked in blue represent the top 20% performance, while green is the next highest 20%.

      APR vs peers MFO DSD Bear Down market Ulcer rating
BlackRock China A Opportunities CHILX China Region +12.9 5 1 1 2 1
Castle Tandem TANDX Multi-Cap Core -4.6 5 1 1 1 1
Palm Valley Capital PVCMX Small-Cap Growth -10.2 5 1 1 1 1
Alger Mid Cap Focus AFOZX Mid-Cap Growth +13.9 5 1 1 1 1
Franklin Templeton Clarion Partners Real Estate Income Inc CPREX Real Estate +5.4 5 1 1 1 1
Innovator Growth-100 Power Buffer ETF – October NOCT Options Arbitrage / Strategies +3.8 5 1 1 1 1
Reynders McVeigh Core Equity ESGEX Multi-Cap Growth +2.9 5 1 2 2 1
Lazard International Quality Growth Portfolio ICMPX International Multi-Cap Growth +3.8 5 1 2 2 1
Fidelity Founders FIFNX Multi-Cap Growth +3.1 5 1 2 2 1
Federated Hermes International Developed Equity HIEIX International Multi-Cap Core +3.7 5 1 2 2 1
Wasatch International Select WGISX International Multi-Cap Growth +4.4 5 1 2 2 1

A note about the two laggards: Palm Valley Capital Fund (PVCMX) is sitting at 80% cash right now, while Castle Tandem (TANDX) is at 30%. Both are run by teams of absolute value investors: folks who believe in owning great stocks, but only when they’re rationally priced. Having concluded that they’re not, both teams are waiting with piles of cash for the inevitable panic.

Full disclosure: Snowball purchased shares of Palm Valley in his personal portfolio at the fund’s launch and has been slowly adding to the position.

This entry was posted in Mutual Fund Commentary on by .

About David Snowball

David Snowball, PhD (Massachusetts). Cofounder, lead writer. David is a Professor of Communication Studies at Augustana College, Rock Island, Illinois, a nationally-recognized college of the liberal arts and sciences, founded in 1860. For a quarter century, David competed in academic debate and coached college debate teams to over 1500 individual victories and 50 tournament championships. When he retired from that research-intensive endeavor, his interest turned to researching fund investing and fund communication strategies. He served as the closing moderator of Brill’s Mutual Funds Interactive (a Forbes “Best of the Web” site), was the Senior Fund Analyst at FundAlarm and author of over 120 fund profiles. David lives in Davenport, Iowa, and spends an amazing amount of time ferrying his son, Will, to baseball tryouts, baseball lessons, baseball practices, baseball games … and social gatherings with young ladies who seem unnervingly interested in him.