Category Archives: Briefly Noted

Briefly Noted…

By David Snowball

Updates

And the beat goes on. Five more mutual funds are becoming ETFs. On October 22, 2021, the Adaptive Fundamental Growth Fund, Adaptive Hedged High Income Fund, Adaptive Hedged Multi-Asset Income Fund, Adaptive Tactical Outlook Fund, and Adaptive Tactical Rotation Fund will be converted into the AI Quality Growth ETF, Adaptive High Income ETF, RH Hedged Multi-Asset Income ETF, RH Tactical Outlook ETF, and RH Tactical Rotation ETF, respectively. While the names and structure change, the investment strategies do not.

DFA is dancing to that very beat. Two more active DFA mutual funds have converted to ETFs: Dimensional International value ETF (DIV) and Dimensional DFA World ex US Core Equity 2 ETF (DFAX). That brings the DFA tally to Continue reading →

Briefly Noted

By David Snowball

Updates

Effective immediately, Neuberger Berman Commodity Strategy Fund‘s investment strategy will permit the fund to invest up to 5% of its assets in cryptocurrency investments through bitcoin futures and investments in the securities of exchange-traded funds organized and listed for trading in Canada to gain indirect exposure to bitcoin.

WisdomTree Cloud Computing Fund, an active ETF, now solemnly swears not to invest in … you know, weapons systems, coal, or tobacco. In short, it’s declared itself to be Continue reading →

Briefly Noted

By David Snowball

Updates

AMG River Road Long-Short is no more. At an as-yet-unspecified date following the inevitable shareholder approval, the $20 million / four-star AMG River Road Long-Short Fund will be wiped away, with its regulatory paperwork giving rise to AMG River Road International Value Equity Fund. Its portfolio (which has only 5% international equity exposure) will be liquidated and replaced with a new all-cap, absolute value portfolio. The new managers will be Continue reading →

Briefly Noted

By David Snowball

Updates

The fund-to-ETF train appears to be leaving the station.

On May 7, 2021, the Adaptive Growth Opportunities Fund became the Adaptive Growth Opportunities ETF.

At some time in the third quarter of 2021, Water Island Long/Short Fund will become the AltShares Event-Driven ETF. That’s a more convoluted change since the fund will change Continue reading →

Briefly Noted

By David Snowball

Updates

A Gold medal for T. Rowe Price: Morningstar has upgraded their assessment of T. Rowe Price’s Retirement Series funds to Gold, their highest endorsement. It’s an endorsement we share. Twenty-four of T. Rowe Price’s funds – including many of the retirement date funds – earn our “Great Owl” designation for consistently top-tier risk-adjusted-performance. We have recognized the firm Continue reading →

Briefly Noted

By David Snowball

Updates

On March 26, 2021, Guinness Atkinson Asia Pacific Dividend Builder Fund (GAADX) and the Guinness Atkinson Dividend Builder Fund (GAINX) were converted into ETFs.

Following the model pioneered by GA, Adaptive Fundamental Growth Fund, Adaptive Hedged High Income Fund, Adaptive Hedged Multi-Asset Income Fund, Adaptive Tactical Outlook Fund, and Adaptive Tactical Rotation Fund are being converted into the Adaptive Fundamental Growth ETF, Adaptive Hedged High Income ETF, Adaptive Hedged Multi-Asset Income ETF, Adaptive Tactical Outlook ETF, and Adaptive Tactical Rotation ETF, respectively.

DFA, the other firm Continue reading →

Briefly Noted

By David Snowball

Updates

On the value of actual human intelligence: The decade’s biggest fund scandal broke on Monday when the SEC accused the advisor of Infinity Q Diversified Alpha Fund (IQDNX) of “adjusting the methodology for obtaining certain asset valuations.” James Velissaris, founder and CIO, was placed on administrative leave while the investigation continues.

The remnants of the fund’s website describe it this Continue reading →

Briefly Noted

By David Snowball

Updates

Eric Heufner, president of Grandeur Peak Global, shares the sad news of the death on January 21, 2021, of one of his colleagues.

It is with great sadness that we announce the death of our dear friend and colleague, Keefer Babbitt. Keefer was not only a great partner and friend, he also set the bar extremely high as it relates to his work. His character, work ethic, depth of thought and the quality of his output were greatly admired by all of us at Grandeur Peak. Keefer joined Grandeur Peak in 2012 as one of our first interns, and over the past 8+ years he has been a true builder of our firm. He made an enormous difference here and he will be greatly missed.

Keefer’s current roles included co-managing the Global Contrarian Fund alongside Mark Madsen and Robert Gardiner, co-managing the Global Reach Fund with six other portfolio managers, contributing on our Industrials team, and of course first and foremost serving as a global research analyst. Given our unique team-based approach, we do not anticipate making any immediate changes to the portfolio management of either fund.

Continue reading →

Briefly Noted

By David Snowball

Updates

Bill Gross must be very sad today. Mr. Gross has been involved in an ugly dispute with a neighbor. As part of that dispute, Mr. Gross played The Gilligan’s Island theme, loudly and continuously, night after night. The neighbor complained. In court. Mr. Gross’s partner, Amy Schwartz, testified to loving the “Gilligan’s Island” theme but denied playing it loud or Continue reading →

Briefly Noted

By David Snowball

Updates

Guinness Atkinson’s groundbreaking OEF-to-ETF conversion is surging ahead. In early summer, GA filed a plan to convert two of their current funds – the four-star Dividend Builder GAINX and Alternative Energy GAAEX – directly into ETFs. Other firms have launched ETF clones of their funds, and a bunch of strategies that would normally have been launched as funds have instead followed the non-transparent, active ETF route. Guinness was the only firm bold enough to try a switchover mid-flight.

The conversions were slowed by “a thousand thoughtful questions and comments” from the SEC, according to president Jim Atkinson. In the latest round of comments, the agency has asked GA to begin incorporating concrete Continue reading →

Briefly Noted

By David Snowball

Updates

FPA has filed to launch FPA Queens Road Small Cap Value Fund. As we noted a couple of months ago, Bragg Capital, an adviser to the Queens Road Funds, entered into an agreement with FPA to have FPA take responsibility for marketing the funds. That allowed FPA to leverage their marketing group and allowed Bragg to focus on running two really exceptional funds: Value and Small Cap Value. This partnership is likely a substantial win for all involved, investors and advisors alike.

FPA, meanwhile, will no longer be managing the Continue reading →

Briefly Noted

By David Snowball

Updates

As of August 13, 2020, SouthernSun Asset Management bought Affiliated Managers Group’s interest in SouthernSun. As a result, SouthernSun is no longer affiliated with AMG; it’s now wholly owned by its employees.

Briefly Noted . . .

AdvisorShares Vice ETF (ACT) has amended its prospectus to allow that “companies that derive at least 50% of their net revenue from the food and beverage industry” are sinful while, at the same time, “the Fund will no longer invest in cannabis or Continue reading →

Briefly Noted . . .

By David Snowball

Effective on October 1, 2020, all of the Alpha Architect funds will transition from index funds to actively-managed ones, though the change will likely be undetectable to investors since “the adviser’s methodology will be substantially unchanged from the current approach it uses.” The funds in question are

  • Alpha Architect U.S. Quantitative Value ETF (QVAL)
  • Alpha Architect International Quantitative Value ETF (IVAL)
  • Alpha Architect U.S. Quantitative Momentum ETF (QMOM)
  • Alpha Architect International Quantitative Momentum ETF (IMOM)
  • Alpha Architect Value Momentum Trend ETF (VMOT).

On June 30, Trillium Asset Management was Continue reading →

Briefly Noted

By David Snowball

Updates

Index Funds S&P 500 Equal Weight NoLoad Fund (INDEX, cool ticker) passed its fifth anniversary on April 30, 2020. It’s no secret that traditional US stock indexes are becoming more and more concentrated in just a few mega-cap names. Ten percent of the S&P 500 is invested in just two stocks (Microsoft and Apple) and 20% of the entire index is held in five stocks (adding Amazon, Facebook, and Alphabet). That’s great if you want concentrated exposure, in particular to mega-cap tech.

There’s an alternative: place an equal amount in each of the S&P 500 stocks. In INDEX, for example, Apple is 0.21% of the portfolio rather than 5.09%. The resulting portfolio is Continue reading →

Briefly Noted

By David Snowball

Updates

Chicago Equity Partners Balanced (MBEAX) no more. MBEAX has been a splendid performer that mixed high-quality, larger US stocks (93% mid- to mega-cap) with investment-grade bonds (99.5% BBB or above, at last reading). Effective April 17, 202, it became the AMG GW&K Global Allocation Fund (MBEAX) with a new name, new team, and new discipline. The portfolio shifts from domestic to global in both its equity and bond sleeves.

Investors should treat this as Continue reading →

Briefly Noted

By David Snowball

Fidelity has disclosed plans to underwrite their money market funds in order to keep their yield from going negative. They have also closed Fidelity Treasury Only Money Market Fund, FIMM Treasury Only Portfolio, and FIMM Treasury Portfolio, which have cumulative $85.5 billion AUM. Fidelity was concerned about the yields on T-bills which, briefly, looked like Continue reading →

Briefly Noted

By David Snowball

BlackRock gets bitten: Jason Zweig of The Wall Street Journal published a TMZ-worthy piece on a scandal involving BlackRock Income Trust (BIT). BIT is a closed-end fund with $750 million in assets and which, in Jason’s judgment, charges “an arm and a leg” for its services. The fund invested $75 million in “a small, privately held movie company, Aviron Capital LLC.” BlackRock underwrote six of Aviron’s seven films that latest of which, After (2019) cast one of the daughter of one of BlackRock fund’s managers in a lead role.

That does not appear to have been a decision triggered solely by the actor’s on-screen abilities. Mr. Zweig reports: Continue reading →

Briefly Noted

By David Snowball

Updates

Effective December 31, 2019, founder Bill Nasgovitz resigned as president of the Heartland Funds and retired from its Board of Directors. He was succeeded, on January 1, 2020, by his son Will.

On December 31, 2019, founder James Oelschlager and his wife Vanita, the owners of Oak Associates, completed the transaction to sell substantially all of their ownership interest to a group led by members of their management team

A quick congratulations to Dennis Baran for being sharp-eyed and active. In December, our Elevator Talk focused on Joe Shaposhnik of the entirely-excellent TCW New America Premier Equities (TGUSX). Dennis, the author of several fine fund profiles for us, was intrigued by what he read, investigated and discovered that while Continue reading →