Author Archives: TheShadow

About TheShadow

The Shadow here! Like Mark, I’m a long-time member of the MFO community. I’ve started over 2300 discussion threads, most focusing on developments in the fund industry. I am a personal investor that was introduced to mutual funds when I was young to fund my college education. As I have grown older, I have expanded my mutual funds holdings to a point where I probably have too many; however, this year they all did extremely well due to the overall performance of the market. I work in the financial industry regulating the consumer finance industry in my state. My hope for the months ahead is that I might share word of developments in the finance industry – the comings and goings, launches and liquidations, the fun and the follies – with you.

Briefly Noted…

By TheShadow

Updates

Star manager Tiffany Hsiao returned to Matthews Asia in mid-November after a stint managing a private fund for Artisan Partners. In mid-December, she was joined by two members of her team from Artisan. It does not appear that she’ll be responsible for individual funds just now but will, instead, work with Mark Headley and the existing Matthews managers “to generate new perspectives and insights across portfolios.” This is unalloyedly good news for Matthews investors, and Continue reading →

Briefly Noted…

By TheShadow

Updates

On November 10th, Tiffany Hsiao rejoined Matthews Asia after leaving the firm in August 2020 to join Artisan Partners to launch a China-focused private fund. Prior to her departure, Tiffany managed the firm’s China Small Companies, former Asia Small Companies (now Emerging Markets Small Companies), and Asia Innovators strategies.

The U.S. Securities and Exchange Commission cleared the way for Dimensional Fund Advisors to Continue reading →

Briefly Noted . . .

By TheShadow

Updates

Welcome to the casino! GraniteShares 3x Short AMD Daily ETP, a product marketed for European investors, recently pulled off the rare feat of going to zero. The fund, purely a speculator’s trading vehicle, was designed to rise by 3% for every 1% that AMD stock fell. Perfect opp for experienced sharks to dart in, tear off a chunk of carcass, and get out before anything bad can happen. Think of a holding time that might be measured in seconds, and you’re there.

The fund imploded when Continue reading →

Briefly Noted

By TheShadow

Updates

The conversion of Akre Focus Fund into an ETF was authorized by its investors in September and is proceeding apace. Thanks to all who took the time to vote their shares!

Briefly Noted . . .

Launches and Reorganizations

On October 17, abrdn International Small Cap fund and the $36m abrdn Intermediate Municipal Income fund will become the abrdn International Small Cap Active ETF and the abrdn Ultra Short Municipal Income Active ETF, respectively. Continue reading →

Briefly Noted . . .

By TheShadow

We wrote last month about the plan to convert Akre Focus Fund into an ETF (“Enduring Principles, Evolving Markets,” 8/2025), a move that would benefit shareholders by increasing interest in the portfolio, reducing expenses, and controlling taxes. That plan encountered a stumbling block: fund shareholders have not bestirred themselves to cast their vote (up or down) on the change proposal. According to the adviser’s rep, only 23% of shares have been voted, which requires an expensive second round of solicitations in hopes of reaching the 50.1% threshold. Continue reading →

Briefly Noted . . .

By TheShadow

Launches and Reorganizations

Akre Focus Fund will be reorganized into an active ETF, pending shareholder approval. They vote in mid-August. If approved, this will be the largest fund-to-ETF conversion (at $12+ billion) ever. Read more in this month’s article, Enduring Principles, Evolving Markets.

ARK ETF Trust Crypto Active ETF is in registration. The fund is an actively managed exchange-traded fund that will invest in domestic and foreign equity securities of companies that invest in, or create investment exposure to one or more “Crypto Assets.” Cathie Wood will be the portfolio manager. Expenses have Continue reading →

Briefly Noted . . .

By TheShadow

Launches and Reorganizations

The Angel Oak Total Return ETF is in registration. The managers will have the freedom to invest in just about every conceivable sort of income-generating security, from investment-grade, corporate bonds to asset-backed securities that include student loan portfolios. Ward Bortz, Namit Sinha, and Clayton Triick will be the portfolio managers of the ETF. Expenses have not been stated at this time.

Goldman Sachs‘ Enhanced U.S. Equity, Strategic Growth Fund, Focused Value, and Technology Opportunities funds will be reorganized Continue reading →

Briefly Noted

By TheShadow

Updates

Jason Gottlieb becomes Artisan’s new CEO on June 4, 2025. He’s not a new import. Mr. Gottlieb has been the president of Artisan Partners since 2021. He joined the firm first in October 2016, prior to which he led Goldman Sachs’ Alternative Investment and Manager Selection Groups and was a portfolio manager on Goldman Sachs Multi-Manager Alternatives Fund. Artisan’s superpower has been its ability to identify and attract superstar management teams from elsewhere; the term they once used Continue reading →

Briefly Noted

By TheShadow

Updates

After 35 years with Ariel Investments, effective May 1, 2025, John P. Miller is retiring from his role as portfolio manager for the Ariel Fund.

RiverNorth/Oaktree High Income Fund (RNHIX) won the 2025 LSEG Lipper Fund Award for Best General Bond Fund for the five-year period ended November 30, 2024. RiverNorth is a closed-end fund specialist that has collaborated with other “A” managers on several funds. The fund embodies three strategies. RiverNorth manages Continue reading →

Briefly Noted …

By TheShadow

CrossingBridge was recently named “Best Fixed Income Small Fund Family Group” at the 2025 U.S. LSEG Lipper Fund Awards Ceremony. As of February 28, 2025, CrossingBridge managed over $3.6 billion, specializing in investment grade & high-yield corporate debt with an emphasis on ultra-short & low-duration strategies as well as credit opportunities. The Firm’s core philosophy is “Return of Capital is more important than Return on Capital”. The accompanying picture on their website is very calming.

While MFO has not gotten to the point of sponsoring an award (much less a fancy-dansy awards banquet), we do Continue reading →

Briefly Noted . . .

By TheShadow

Parnassus International Equity Fund is in registration.  The fund, managed by Ken Ryan, CFA, will be a large cap fund that invests in equity securities of non-U.S. companies.  Expenses have not been stated.

Profunds has launched its Ether ProFund. The fund does not invest directly in ether, but rather ether future contracts. According to the prospectus, the fund has a Continue reading →

Briefly noted

By TheShadow

Dana Emery, Chair and CEO of Dodge and Cox Funds, has decided to retire on December 31, 2025. Effective January 1, 2026, David Hoeft will succeed her as the Chair while continuing his CIO role. Roger Kuo will succeed as the Chair while continuing to serve as President of the firm.

Harbor Capital plans to launch eight subadvised ETFs across several asset classes in the coming months, according to a filing with the Securities and Exchange Commission. 

There will be Continue reading →

Briefly Noted

By TheShadow

The Intrepid Small Cap Fund was reorganized into the Intrepid Capital Fund on November 22. Eric Cinnamond managed the Intrepid Small Cap Composite from 1998-2010 and the Intrepid Small Cap Fund from 2005-2010. Jayme Wiggins took over the Intrepid Small Cap Fund upon Eric’s departure in 2010.  Jayme Wiggins managed the fund using the same absolute return investment strategy until September 2018. Both are now part of Palm Valley Capital Management.

The Oakmark U.S. Large Cap ETF is in Continue reading →

Briefly Noted …

By TheShadow

AKRE Focus ETF is in registration. The Fund invests primarily in securities of companies listed on U.S. stock exchanges. Investments consist primarily of common stocks of companies of any size market capitalization. John H. Neff will be the portfolio manager. Expenses have not been disclosed. Mr. Neff also comanages Akre Focus Fund, which was founded by the namesake Charles Akre. Mr. Akre was remarkable, engaging, and … well, old. He retired from day-to-day management about three years ago. Since then Akre Focus Fund has performed in the way it was designed: exceptional in down markets, reasonable in up markets. In the absence of Mr. Akre, that seems not to have convinced shareholders to stay:

In the fund’s three “laggard” years, including 2024, it’s made an average Continue reading →

Briefly Noted

By TheShadow

Updates

SEC slaps GQG: The US Securities and Exchange Commission levied a $500,000 fine against GQG Partners and Rajiv Jain for violations of whistleblower protection laws and issued a cease-and-desist order against the illegal practices. At base, GQG required (some?) new hires and one former employee to sign agreements which would make it difficult for them to disclose wrongdoing on GQG’s part. “Whether through agreements or otherwise, firms cannot impose barriers to persons providing evidence about possible securities law violations to the SEC, as GQG did,” said Corey Schuster, Co-Chief of the Division of Enforcement’s Asset Management Unit.

As of 27 September 2024, GQG’s website did not reflect any discussion of the action. Reports in other media note that GQG “acknowledged the SEC’s jurisdiction in the case Continue reading →

Briefly Noted

By TheShadow

Updates

Tortoise Capital Advisors is merging three closed-end funds, with combined assets of over $300 million, into a single actively managed ETF. The current funds are Tortoise Power and Energy Infrastructure Fund (TPZ), Tortoise Pipeline & Energy Fund (TTP), and Tortoise Energy Independence Fund (NDP). They will be supplanted by the Tortoise Power and Energy Infrastructure ETF which will adopt TPZ’s strategy for its own. As a warning Continue reading →

Briefly Noted

By TheShadow

Updates

As of July 19, 2024, the Amplify High Income ETF went from passively tracking an index of the top 45 US closed-end funds to tracking the top 60.

Briefly Noted . . .

The US Securities and Exchange Commission reserves the right to study any proposed fund offering for 70 days before the adviser is permitted to offer the fund for sale to the public. During that time, (a) the SEC might require substantive or editorial changes to the fund’s prospectus and (b) the adviser is permitted to Continue reading →

Briefly Noted

By TheShadow

Updates

Effective June 3, 2024, David Baron and Michael Baron became Co-Presidents of Baron WealthBuilder Funds and of Baron Asset Management. Ron Baron remains Chairman, CEO, and Portfolio Manager.

On or about August 28, 2024, IQ Winslow Large Cap Growth ETF and IQ Winslow Focused Large Cap Growth ETF will change from semi-transparent active ETFs to fully transparent active ETFs which will publicly disclose all of its actual portfolio holdings on a daily basis. Continue reading →

Briefly Noted

By TheShadow

Updates

Morningstar expresses concerns with Akre Focus (AKREX).

On March 31, 2024, this portfolio had double-digit stakes in four different stocks … Such hefty positions aren’t the only concerns here, though. The transition from firm founder Chuck Akre to younger managers and analysts has been rocky, featuring several unexpected departures. The investment team currently consists only of manager John Neff and two research analysts.

There has been a serious problem with outflows from the fund, in almost a quarter since Mr. Akre formally separated himself from day-to-day management at the end of December, 2020. Firm assets Continue reading →

Briefly Noted

By TheShadow

Fidelity Investments is planning to charge a $100 servicing fee when placing buy orders on exchange-traded funds issued by nine firms. The new servicing charge, which may be imposed on ETFs issued by Simplify Asset Management, AXS Investments, Day Hagan, Sterling Capital, Cambiar, Regents Park, Rayliant, Adaptive, and Running Oak, is set to take effect on June 3. The new fee will apply to ETFs that do not participate in a maintenance arrangement with Fidelity.  Fidelity may update its “Surcharge-Eligible ETF” list again.    

Poster Rforno noted that Calamos Investments LLC announced the launch of 12 structured protection exchange-traded funds which seek to provide 100% protection and equity upside to a predetermined cap over one-year outcome periods (before fees and expenses). The ETFs are Continue reading →