Leuthold: going anywhere "Is this a buy and forget fund, as I am looking for one? If this is not a buy and forget fund, what purpose does this fund serve in a portfolio?
I would never buy an OEF (traditional mutual fund) that I didn’t consider a long-term hold (“buy and forget” to use
@BaluBalu’s words).
Luthold as a money manager has a great long term record. I believe they were primarily engaged in research / analysis for various big players (and well respected) before launching their own mutual funds. But nothing is guaranteed. The manager turnover is the main reason M* recently downgraded its rating of LCORX to silver from gold. Interestingly, LCOR retains their gold rating.
To tread a bit further out onto the thin ice … The fund replaces DODBX in my 10-segment (equal weight) portfolio. I believe DODBX to be a better moderate risk long term hold. They’ve refined their process in recent
years to reduce the potential for losses in bear markets and their fees are much more compelling. Not to argue the merits of each. Just perhaps to address BaluBalu’s question of
where it might fit in a portfolio.
Why did I get out of DODBX after a couple decades? I decided about a year ago to consolidate all holdings at Fidelity. While DODBX transferred in OK, it became awkward, to say the least, to rebalance it or increase its weighting without getting hit with a fee. Wasn’t worth the aggravation for me.
I believe funds to an extent are captive to the economic environment of the day. No manager can prepare for every eventuality. While I loath the
P-word infiltrating the investment part of the board, I think in about 84 days the economic / financial / social / political backdrop that now seems normal will transition to a much
riskier more difficult environment.
My last comment in this thread. Got a couple bucks riding on tonight’s Dodgers / Brewers game. :)
Leuthold: going anywhere @HankI was using VBIAX as an example of a passive 60/40 because it can be bought vs. an abstract index. I have a brokerage account at Vanguard but with no holdings because I abandoned Vanguard many
years back. VBIAX is available at Fidelity (for a fee, not NTF). Fidelity equivalents of VBIAX appear to be FBALX, FPURX.
I don't do the fundamental and strategy analysis you do because I don't feel qualified to do so. I rely heavily on Sortino and R-Squared metrics and tilt towards investments with high Sortino and low R-Squared.