Category Archives: Funds

Dynamic Alpha Macro (DYMIX)

By David Snowball

Objective and strategy

The managers aspire to outperform the S&P 500 over meaningful time periods, while managing risk by blending non-correlated assets such as a discretionary global macro strategy with a portfolio of US equities. The portfolio has two components: a US equity component, which is executed by buying low-cost ETFs, and a macro-driven Futures Trading Strategy. Through rebalancing between these approaches, they hope to harness divergent performance drivers to create what they term “Dynamic Alpha.” The equity strategy divides its investments between growth, high-dividend, and broad market stocks. The Future Trading Strategy, executed by a trading adviser, provides exposure to over Continue reading →

FPA Queens Road Small Cap Value (QRSVX)

By David Snowball

Objective and strategy

The fund seeks capital appreciation by investing in the stocks or preferred shares of U.S. small-cap companies. The manager pursues a sort of “quality value” strategy: he seeks high-quality firms (strong balance sheets and strong management teams) whose stocks are undervalued (based, initially, on price/earnings and price-to-cash flow metrics). Because it is willing to hold companies as their market cap rises, the portfolio has about 9% invested in mid-cap stocks that it bought when they were small caps.

In general the portfolio holds Continue reading →

GQG Global Quality Dividend (GQFPX / GQFIX)

By David Snowball

Objective and strategy

The strategy is to assemble a portfolio of 35-70 stocks. The target universe is high-quality, dividend-paying securities of U.S. and non-U.S. companies, including those in emerging market countries. GQG Partners primarily relies on fundamental, rather than quantitative, research to evaluate each business based on financial strength, sustainability of earnings growth, and quality of management. The investment strategy is quality first; from the pool of firms that meet its Continue reading →

Standpoint Multi-Asset Fund (BLNDX / REMIX)

By David Snowball

Objective and strategy

The Standpoint Multi-Asset Fund seeks positive absolute returns through an “All-Weather strategy.” The fund holds a global equity portfolio built from regional equity ETFs. The strategy also invests, both long and short, in exchange traded futures contracts from seven sectors: equity indexes, currencies, interest rates, metals, grains, soft commodities, and energy. The managers attempt to participate in medium- to long-term trends in global futures markets and to produce a reasonable return premium in Continue reading →

Artisan International Explorer (ARDBX/ARHBX)

By David Snowball

Objective and strategy

The investment team seeks to invest in high-quality, undervalued businesses with the potential for superior risk/reward outcomes. The investment universe is generally non-US equities with market caps below $5 billion. The portfolio is typically 25-50 holdings, with individual holdings capped at about 10% and cash generally under 15%.

Adviser

Artisan Partners, L.P. Artisan is a remarkable Continue reading →

Funds worth watching for: T Rowe Price Capital Appreciation & Income and Vontobel Global Environmental Change Fund

By David Snowball

The Securities and Exchange Commission, by law, gets between 60 and 75 days to review proposed new funds before they can be offered for sale to the public. Each month we survey actively managed funds and ETFs in the pipeline. Summer is a slow time for new fund launches, with the pipeline filling up in November in anticipation of reaching the market by December 30.

Many new funds, like many existing funds, are Continue reading →

Funds worth watching for: Genoa Opportunistic Income ETF and Dynamic Alpha Macro Fund

By David Snowball

The Securities and Exchange Commission, by law, gets between 60 and 75 days to review proposed new funds before they can be offered for sale to the public. Each month we survey actively managed funds and ETFs in the pipeline. Summer is a slow time for new fund launches, with the pipeline filling up in November in anticipation of reaching the market by December 30.

Many new funds, like many existing funds, are bad ideas. (Really, you want an ETF that invests in a single AI stock?) Most will flounder in rightful obscurity. That said, each month brings Continue reading →

Leuthold Core Investment (LCORX/LCRIX), June 2023

By David Snowball

Objective and strategy

Leuthold Core pursues capital appreciation and income through the use of tactical asset allocation. The objective is to avoid significant loss of capital and deliver positive absolute returns while assuming lower risk exposure and lower relative volatility than the S&P 500. Assets are allocated among stocks and ADRs, corporate and government bonds, REITs, commodities, an equity hedge, and cash. Portfolio asset class weightings change as conditions do; exposure is driven by models that determine each asset class’s relative and absolute attractiveness. Equity and fixed-income exposure each range Continue reading →

Osterweis Strategic Income Fund (OSTIX), April 2023

By David Snowball

“Yearning for the good old days is not an investment strategy”

Objective and strategy

The strategy is to preserve capital and attain long-term total returns through a combination of current income and moderate capital appreciation. The managers invest in income-producing securities, primarily high-yield bonds, but will shift the allocation to managing a changing risk and opportunity set. Such changes might include shifting toward higher quality or shorter duration securities and increasing the fund’s cash stake. As of February 28, 2023, 77% of the portfolio is invested in high-yield bonds with an average duration Continue reading →

RiverPark Strategic Income Fund (RSIVX)

By David Snowball

Objective and strategy

The fund is seeking high current income and capital appreciation consistent with the preservation of capital. The managers invest in “money good” securities; that is, in securities where the underlying strength of the issuer is great enough that “the risk of loss of principal due to permanent impairment is minimal.” It can invest in both investment grade and non-investment grade securities depending on market conditions and opportunities. They can also invest in Continue reading →

Seafarer Overseas Value Fund (SFVLX), April 2023

By David Snowball

“We are living through investment regime change”

Objective and strategy

Seafarer Overseas Value pursues long-term capital appreciation. The fund typically invests in common stocks, though the managers have the ability to add both preferred stocks and fixed-income securities. The investable universe includes both emerging markets, as traditionally conceived, and companies domiciled in selected foreign developed nations Continue reading →

Towpath Focus: Adventures of a Growth Manager in Valueland

By David Snowball

On December 31, 2019, Oelschlager Investments launched the Towpath Focus Fund (TOWFX). The fund invests in 25-40 domestic stocks regardless of market capitalization. The fund is managed by Mark Oelschlager.

Towpath is a concentrated, all-cap equity fund. The portfolio currently holds 41 securities. About 15% of the portfolio is invested in non-US stocks and 12% in cash. Compared to its Morningstar peers, the fund has more cash, more international, and more small-cap exposure. The portfolio stocks are higher growth companies (measured by sales, cash-flow, and book value growth) that sell for lower prices (measured by price-to-book, price-to-earnings, and price-to-sales) with higher returns than either their peers or their index. Continue reading →

Vela Large Cap Plus I (VELIX)

By Dennis Baran

Let’s be blunt!

Why bury the lead?

“90% of everything is crap.”

 

 

 

 

That’s Ric Dillon, the fund’s PM, quoting Theodore Sturgeon (1918-85), a science-fiction author frustrated by a prevailing thought of his time– that works of science fiction are universally bad.

His defense of his chosen field, argued in a New York University lecture hall, can be boiled down to a simple argument. Continue reading →

Harbor International Small Cap (HIISX / HNISX), September 2022

By David Snowball

Objective and strategy

Harbor International Small Cap Fund pursues long-term growth by investing in a diversified portfolio of international small-cap stocks. They have three particular preferences:

  1. demonstrate traditional value metrics primarily on a price to book, price to earnings, net asset value (NAV), and/or dividend yield basis;
  2. well-capitalized and transparent balance sheets and funding sources; and
  3. business models that, through a complete business cycle, generate returns on equity or invested capital in excess of their cost of capital.

Continue reading →

Disciplined Growth Investors (DGIFX), September 2022

By David Snowball

Objective and strategy

Disciplined Growth Investors pursue both long-term growth and modest current income at reasonable risk. Approximately 65% of the portfolio is invested in stocks and approximately 35% in bonds and cash. The managers can gradually shift equity exposure down to about 55% or up to about 70% if market conditions warrant.

The managers invest primarily in smaller US stocks, currently defined as those with market capitalizations between $1 billion and $15 billion. They “don’t mindlessly diversify across every market, sector, and asset class.” They focus on Continue reading →

Fidelity Actively Managed New Millennium ETF (FMIL), September 2022

By Charles Lynn Bolin

Since retiring two months ago, I purchased the actively managed Fidelity New Millennium ETF (FMIL) for diversification. It is one of four actively managed equity ETFs offered by Fidelity that has more than $50M in assets. My introduction to FMIL came from an article by Tezcan Gecgil, “3 Fidelity ETFs To Diversify Your Portfolio In August,” at Investing.com, in which she highlighted that FMIL has done relatively well year-to-date. I then read “ETF of the Week: Fidelity New Millennium ETF (FMIL)” by Aaron Neuwirth from VettaFi, formerly known as ETF Database, which summarizes a podcast by ETF Trends CEO Tom Lydon in “ETF of the Week” with Chuck Jaffe Continue reading →

Conestoga Micro Cap Fund (CMCMX / CMIRX), June 2022

By David Snowball

Objective and strategy

The Fund seeks to provide long-term growth of capital. The plan is to invest in 25-40 microcap stocks that are attractively priced relative to their growth prospects. Across the firm, the managers favor companies which have sustainable earnings growth rates, high returns on equity, low debt levels, and capable management teams. The strategy aims to produce consistent returns with low volatility and reduced downside capture.

Adviser

Conestoga Capital Advisors, LLC. Headquartered outside of Philadelphia, Conestoga had its origins in the 1980s but Continue reading →

Intrepid Income Fund (ICMUX), February 2022

By David Snowball

Objective and strategy

The fund’s goal is to generate current income. In particular, they want to offer an attractively higher yield than comparable maturity US Treasury securities without taking significant default or interest rate risk.

The managers invest primarily in shorter duration corporate bonds, both investment grade, and high yield. They might also own other income-producing securities such as securitized loans and convertible securities. Generally, the majority of securities in the portfolio are part of smaller issues of less than $500 million.

Comments

For investors, there is only one risk: Continue reading →

Funds in Registration

By David Snowball

The Securities and Exchange Commission, by law, gets between 60 and 75 days to review proposed new funds before they can be offered for sale to the public. Each month we survey actively managed funds and ETFs in the pipeline. This month brings 24 new products in the pipeline, most of which will launch in March 2022.

Including in the funds in registration are funds that are being converted from open-end funds to ETFs and those which have been purchased by new advisers, often with minor tweaks. Two funds in the latter camp which Continue reading →

Osterweis Growth and Income Fund (formerly Osterweis Strategic Investment Fund), (OSTVX)

By David Snowball 

At the time of publication, this fund was named  Osterweis Strategic Investment Fund.

Objective and strategy

The fund pursues the reassuring objective of long-term total returns and capital preservation. Osterweis starts with a strategic allocation that’s 50% equities and 50% bonds. In bull markets, they can increase the equity exposure to as high as 75%. In bear markets, they can drop it to as low as 25%. Their argument is that “Over long periods of time, we believe a static balanced allocation of 50% equities and 50% fixed income has the potential to provide investors with returns rivaling an equity-only portfolio but with less principal risk, lower volatility, and greater income” achieved through the compounding of reasonable gains and the avoidance of major losses.

Both equity and debt are largely unconstrained, that is, the managers can Continue reading →