Category Archives: Funds

Balter Invenomic (BIVRX/BIVIX/BIVSX)

By David Snowball

Objective and strategy

Balter Invenomic Fund is seeking long term capital appreciation. They pursue that through a widely diversified long-short portfolio comprised, primarily, of domestic stocks. The long and short portfolios each held about 150 positions, as of early 2019. The long portfolio is always fully invested in undervalued, timely stocks while the size of the short portfolio varies based on the opportunities available. The long portfolio is all-cap and might include equity securities other than just common stocks. The fund’s short portfolio is broadly diversified and targets stocks which are both overvalued and are likely to fall. The short portfolio is not designed merely as a defensive buffer; it is designed to deliver positive returns and reduce the overall risk of the portfolio through Continue reading →

River Canyon Total Return Bond Fund Institutional Class (RCTIX)

By Dennis Baran

Objective and strategy

The fund seeks to maximize total return by investing across the structured credit sectors – RMBS, ABS, CMBS, CLO, and other non-traditional fixed income sectors. The fund must invest at least 60% of its assets in securities rated as investment grade. The balance of the fund will typically be invested in bonds rated below investment grade.

The management team seeks relative value across the breadth of structured credit sectors including Agency/Non-Agency RMBS, ABS, CLOs, Mortgage Derivatives, and Continue reading →

Funds in Registration

By David Snowball

Before funds and ETFs can be offered to the public, they’ve got to be submitted to the SEC which has 70 days to review the application. In general, advisers try to launch just before year’s end because that allows them to have clean “year to date” and calendar year results to share. These launches will likely occur in late June so that they’ll at least have full-quarter results for 2019 Q3.

The dominant themes this month seem to be enhanced risk-management (Aptus, Horizon, Hussman, Quadratic, RG) and ESG emphasis (Horizon, Kennedy, Wahed). Also cannabis. Continue reading →

Brown Advisory Sustainable Growth Fund (BAFWX/BIAWX/BAWAX)

By David Snowball

Objective and strategy

The managers seek long-term capital appreciation by investing in a concentrated portfolio of 30-40 mid and large capitalization companies that use sustainable business strategies (SBA) to drive future earnings growth.

They focus on finding companies whose sustainability strategies are generating tangible business results such as revenue growth, cost improvement, or enhanced franchise value. Such companies may enjoy competitive advantages from environmentally efficient design or manufacturing or offer Continue reading →

Funds in registration

By David Snowball

Before funds and ETFs can be offered to the public, they’ve got to be submitted to the SEC which has 70 days to review the application. In general, advisers try to launch just before year’s end because that allows them to have clean “year to date” and calendar year results to share. These launches will likely occur in late May or June so that they’ll at least have full-quarter results for 2019 Q3.

The team behind Harbor Focused International has been recognized as one of the best asset managers in Europe, while the advisers behind DoubleLine Emerging Markets Local Currency Bond Fund and Vanguard Global ESG Select Stock Fund are among the best in US fixed income and equity investing, respectively. And yet, the Kensington Managed Income Fund might have the best underlying performance of them all. That makes it a Continue reading →

Funds in Registration

By David Snowball

Before funds can be offered to the public, they’ve got to be submitted to the SEC which has 70 days to review the application. In general, advisers try to launch just before years end because that allows them to have clean “year to date” and calendar year results to share. These launches will likely occur in late April or May.

Palm Valley Capital Fund is sort of a stand-out here, despite the name that vaguely calls a retirement community (with golf!) to mind. It will be a small cap stock fund managed by Continue reading →

Marshfield Concentrated Opportunity (MRFOX)

By Dennis Baran

Objective and strategy

MRFOX seeks capital preservation and long-term growth of principal while targeting a pattern of performance that’s at variance with the market, different from it in as many ways as possible, and adds value on a risk-adjusted basis. The managers’ goal of avoiding the “closet index” trap while laying the groundwork for superior performance means

  • owning a thoughtful concentration of approximately 20 stocks
  • holding cash between of 0-25 percent while awaiting well-priced opportunities
  • steering clear of generic “consensus” stocks and
  • being freed from sector and market capitalization constraints

Continue reading →

Funds in registration

By David Snowball

Just a handful of new funds were registered with the SEC this month, perhaps in response to the disruption caused by the government shutdown which affected the SEC. In any case, we’ve chosen to highlight just two funds from that list; both are guided by first-rate managers whose long careers and other funds should engender considerable interest and respect. Continue reading →

Funds in registration

By David Snowball

Before funds can be offered to the public, they’ve got to be submitted to the SEC which has 70 days to review the application. In general, advisers try to launch just before years end because that allows them to have clean “year to date” and calendar year results to share. These launches will likely occur in late February or March.

Many prospectuses were still incomplete but a couple stand out for offering services from well-respected advisors: Diamond Hill, which has a Continue reading →

Funds in Registration

By David Snowball

Before funds can be offered to the public, they’ve got to be submitted to the SEC which has 70 days to review the application. In general, advisers try to launch just before years end because that allows them to have clean “year to date” and calendar year results to share. That means that funds hopeful of launching by December 30th needed to be filed by October 15th. Since few firms are interested in launching funds in late January or early February, this month’s filings are not-surprisingly thin. On face, the most promising is likely an actively-managed ETF from a team with a strong track record in funds: Virtus Seix Senior Loan ETF.

AB Multi-Manager Select 2060 Fund

AB Multi-Manager Select 2060 Fund will seek highest Continue reading →

Provident Trust Strategy Fund (PROVX)

By Dennis Baran

Objective and strategy

PROVX seeks long-term growth of capital. As a concentrated, non-diversified, bottom-up, multi-cap core growth equity fund, it aims to exceed the S&P 500 Index over full investment cycles, which are typically five to seven calendar years in length and contain both a 30% advance and a 20% decline.

The managers generally prefer to invest in large and medium capitalization stocks (namely, companies with at least $2 billion in market cap) but may also invest a portion in small capitalization companies.

Provident has the Continue reading →

Funds in registration

By David Snowball

Before funds can be offered to the public, they’ve got to be submitted to the SEC which has 70 days to review the application. That means that funds hopeful of launching by December 30th needed to be filed by October 15th. We’re looking for funds that might be accessible to the average investor or advisor; we include active ETFs but not passive ones. That last restriction allows me to pretend that neither ProShares Pet Care ETF nor the US Vegan Climate ETF is about to be inflicted on us. Continue reading →

Funds in Registration

By David Snowball

Before funds can be offered to the public, they’ve got to be submitted to the SEC which has 70 days to review the application. That means that funds hopeful of launching by December 30th need to be filed by October 15th. This month’s 15 new funds, including offerings from both DoubleLine and T. Rowe Price, represent the first part of that year-end wave. Continue reading →

Conestoga SMID Cap Fund (CCSMX & CCSGX)

By Dennis Baran

Objective and strategy

The managers seek long-term growth of capital favorable to its benchmarks with lower risk – specifically companies with 12-15% earnings growth potential for at least three years. They typically hold 40-60 SMid stocks whose valuations are attractive relative to their growth prospects. SMid caps have market capitalizations between $250 million and $12 billion, and are generally within the range of those in the Russell 2500 Growth Index.
Continue reading →

Funds in Registration

By David Snowball

A surprising number of interesting funds have quietly entered the SEC’s new-fund pipeline. While we don’t cover passive ETFs or funds not available to the general public, even there there were interesting developments. DFA Emerging Markets Targeted Value Portfolio will target small and mid-cap EM value stocks, which is consistent with DFA’s research bent and validates the increasing interest in EM value. Impact Shares YWCA Women’s Empowerment ETF will target firms whose values align with the YWCA’s long-time public goals. Of more direct interest, Rajiv Jain of GQG Partners is launching a fund focusing on US equities, a long-time AllianzGI manager is adding an EM value fund to the mix, The Great Gabelli is seizing the helm of his 15th fund and a team from France is offering a direct challenge to the ideology of market-cap-weighted indexes. Continue reading →

Zeo Short Duration Income (ZEOIX), July 2018

By Charles Boccadoro

“Perhaps time’s definition of coal is the diamond.”

Kahlil Gibran

Objective and Strategy

The Zeo Short Duration Income Fund (ZEOIX), previously known as the Zeo Strategic Income Fund, is a non-diversified, actively managed, total return, fixed-income fund that seeks …

  • “ … to deliver low volatility, risk-managed solutions for the prudent investor.”
  • “ … low volatility and absolute returns consisting of income and moderate capital appreciation.”
  • “ … long-term capital preservation, income and moderate capital appreciation across market environments.”
  • “ … low volatility, absolute returns in a long-only fixed income portfolio.”
  • “ … to deliver a consistent, low-volatility risk profile suitable for both short and long time horizons.”
  • “ … to deliver low volatility.”

Clearly, ZEOIX’s focus is Continue reading →

LS Opportunity Fund (LSOFX)

By David Snowball

Objective and strategy

LS Opportunity Fund pursues three goals: preserving capital, delivering above-market returns and managing volatility. “The secret,” says manager John Gillespie, “is to avoid large losses.” They invest, both long and short, in individual stocks; they do not short “the market,” they don’t use esoteric options and they don’t typically use ETFs. They normally will have 20-40 short positions and 50-70 long ones. The long portfolio is both all-cap and value-oriented, both of which are fairly rare. The short portfolio targets Continue reading →

Holbrook Income Fund (HOBIX)

By Dennis Baran

Objective and strategy

The fund seeks to provide current income with a secondary objective of capital preservation in a rising interest rate and inflationary environment.

The manager’s goal is to achieve a 2% return above inflation, generate income, and protect principal. By managing credit and interest rate risk, limiting duration, and minimizing drawdown to less than 2%, it’s designed to fend against frontal attacks that may ravage the bond market which reduce investor returns and suffocate Continue reading →

Funds in Registration

By David Snowball

VanEck has registered a launch a video-gaming and e-sports ETF, which strikes me as silly in the extreme but at least doesn’t include cryptocurrencies. “Silly in the extreme” means we’re not saying anything more about it. Happily, a bunch of really solid offerings – a new Litman Gregory, a bond fund run by ex-PIMCO guys, an emerging markets offering from LSV and the ETF version of several four-star funds – were filed at the same time. All of these funds and active ETFs are likely available by the end of September. Continue reading →