Re “I remain in a cash build mode.”
Maybe a “cash build moat”?
moat - NOUN, a deep, wide ditch surrounding a castle, fort, or town, typically filled with water and intended as a defense against attack.
Source: https://www.bing.com/search?q=meaning+of+moat&qs=AS&pq=meaning+of+moat&sc=8-15&cvid=020AF923D25746F5A72AFD2AE8E0E89F&FORM=QBRE&sp=1

FYI: In a year full of political and economic drama, emerging markets have outpaced an aging bull market in the U.S. over the last 12 months. Still, the prospect of Beijing wielding a heavier hand in Chinese companies and economic reforms in India potentially slowing near-term growth means that investors who take a closer look now will need to pick their spots carefully.
Regards,
Ted
https://www.barrons.com/articles/how-to-play-emerging-markets-now-1511579482

Hello,
I do my monthly close on the last Friday of each month with the exception being in December where I use the 31st. My report follows.
For November Old_Skeet's barometer closed the month with a reading of 145 indicating that the S&P 500 Index is overvalued. The barometer consist of three feeds. A breadth feed, an earnings feed along with a technical score feed. At times other technical indicators are used along with a short interest reading. Currently, short interest for SPY is reported at 2.5 days to cover and currently is not a detractor to the reading.
The barometer from a technical basis reflects there are no major sectors within the 500 Index being scored undervalued or oversold. For the month the three best performing sectors were technology (XLK), consumer discretionary (XLY) and real estate (XLRE).
Within my own portfolio I have noticed that my bond duration has fallen from 3.4 years to 3.0 years over the past month. Many may remember my reporting that I have begun to move towards using a good number of hybrid type funds along with some multi sector income funds within my portfolio to make it more dynamic and adaptive to ever changing market conditions. So far, the addition of hybrid funds has now grown to the point where their use has enough influence on the portfolio to make it more dynamic. In addition, based upon a seasonal investment strategy I am overweight equities, at this time by 4%, over what my equity weighting matrix is calling for.
With the overvalued stock market, as measured by Old_Skeet's barometer, for now, I remain in a cash build mode while I await the next stock market pullback. However, with many of my mutual funds making some sizeable capital gain distributions come December I may reinvest some of this money towards the first of the year. One area I plan to look at is hybrid type funds both (convertibles and multialternative).
Listed below are what my five year average investment returns have been by sleeve and for two bogeys. The first percent number is the average yearly return and the second number is the sleeve's current yield. Notice, the higher yielding sleeves generally have lower yearly returns.
Income Area, Income sleeve ... 5.2% ... 3.26%
Income Area, Hybrid Income sleeve ... 7.5% ... 4.15%
G&I Area, Global Hybrid sleeve ... 8.4% ... 3.66%
G&I Area, Domestic Hybrid sleeve ... 9.7% ... 2.95%
G&I Area, Global Equity sleeve ... 11.4% ... 2.31%
G&I Area, Domestic Equity sleeve ... 12.7% ... 2.78%
Growth Area, Global Growth sleeve ... 14.7% ... 0.47%
Growth Area, Large/Mid Cap sleeve ... 17.0% ... 0.21%
Growth Area, Small/Mid Cap sleeve ... 13.8% ... 1.71%
Growth Area, Specialty sleeve ... 11.7% ... 1.18%
Master Portfolio (as a whole including cash sleeves, equity adjustment range +/-5%) ... 9.6% ... 2.5%
Investment Portfolio (without cash sleeves, equity adjustment range +/-5%) ... 11.2% ... 3.0%
Bogey Static 50/50 Index Mix (portfolio with no cash position, rebalance annually) ... 9.0% ... 1.8%
Bogey Active 50/50 Index Mix (portfolio with no cash position, equity adjustment range +/- 20%) ... 9.8% ... 1.6%
A recent Morningstar Instant Xray analysis listed my asset allocation as Cash 17%, U S Srocks 31%, Foreign Stocks 20%, Bonds 25% and Other 7% along with the yield being 2.51%. Five years ago the porfolio's yield was in the 3.25% range with the distribution yield being north of 5%. This year I'm thinking the distribution yield will be around 4% which includes interest, dividends and capital gain distributions.
For those looking for a way to consolidate multiple accounts into a consolidated report I have found Morningstar's Portfolio Mananger a good and accurate way to track investment performance along with other investment and portfolio metrics. Year-to-date both Portfolio Manager and a manual tabulation of account statements are producing the same total return number of 9.6% through Friday November 24th.
Thanks for stopping by and reading.
I wish all ... "Good Investing."
Old_Skeet
Note: Edited with current yield percent on 11/26/2017 and consolidated statement summary on 11/29/2017.

@Ted ... You do a great job of finding interesting articles!
... As for judging mutual funds, YTD is a bit arbitrary and too short IMO ...

I agree on both points. YTD Is fun to watch. I suppose we all do it. But unless you’re trying to grab a fast profit on a hot fund it’s quite meaningless.
I generally won’t buy a fund without looking at ‘08 in its prospectus. Such a telling bit of information. Too bad it will not show up in prospectuses after another year or two. I wish the SEC would require they go back at least 15 years in reporting a fund’s yearly performance.

Happy Thanksgiving all! And thanks Old_Skeet.
The list above is simply compiled from YTD numbers from the following M* categories:
Multialternative
Long Short Equity
Long Short Credit
Market Neutral
Managed Future
Options Based
Many of the funds listed above do not have 3-year track records. One of the few that do has a $750M minimum investment (Grantham's Special Opportunity fund)!
We're keeping our nose to the grindstone. Focusing on process and letting results take care of themselves.

So the Yacktman boys been able to add value, or continue to add value --- recent returns (3y and shorter) do not outperform SP500, but risk is lower.

There were 35 mutual funds and ETFs that turned 3 years old thru October.
Like it or not, the first 3 year performance mark can be crucial to a fund's commercial success and continued viability, since that's when Morningstar assigns its star rating.
Below please find leaders by AUM and leaders by MFO ratings (risk adjusted return based on Martin).
Three overlap: AQR Equity Market Neutral Fund R6 (QMNRX), SEI Emerging Markets Equity Fund A (SMQFX), and Ivy Mid Cap Income Opportunities Fund N (IVOSX).
Four get MFO Great Owl designations, which also first get determined at the 3 year mark: Leland Thomson Reuters Venture Capital Index Fund I (LDVIX), AQR Equity Market Neutral Fund R6 (QMNRX), First Trust Eurozone AlphaDEX ETF (FEUZ), and Schwab Fundamental Global Real Estate Index Fund (SFREX).

FYI: Foreign small caps can be better diversifiers because they have closer ties to their local economies.
Regards,
Ted
http://news.morningstar.com/articlenet/article.aspx?id=837750

Hi @jerry and others,
I don't track a 60/40 but the 50/50 Index mix that I do track has had the following returns. They follow: 2012/9.96% ... 2013/17.31% ... 2014/5.60% ... 2015/0.54% ... 2016/7.04% ... 2017(ytd)/10.87%. The cumulative return for this period is 53.85% with the average being 8.98%.
The reason I use the 50/50 mix is that now in retirement I only move my equity allocation +/- 5% from its neutral position of 50% unless market conditions warrant otherwise. Years back I'd go +/-10% from the neutral position thus a 60/40 mix might be a better allocation for this adjustment range.
My cumulative return on my own portfolio for the above period has been 57.47% with the average being 9.58%. Some will ask ... Has it been worth it to be active? For me, it has been as it has put a good bit of extra cash in my pocket vs. running with a static 50/50 mix. Plus being a student of the market has been rewarding in of that itself.
In addition, I use American Funds' Capital Income Builder (CAIBX), my third largest holding, as my global hybrid fund bogey because of its global allocation and yield. Its cumulative return is 49.55% for the period with the average being 8.26%. My return over the 50/50 mix is about 6% and over CAIBX about 16%. Generally, I have found, higher yielding hybrid funds offer lower returns. And, my portfolio does kick off a good yield and has a global orientation. I also, use the Lipper Balanced Index as another standard.
In looking at a sampling of some of the funds listed in the article the two I looked at GSOFX & USMYX did not have the history necessary for a compairson. However, I did do one against KCMTX listed by Morningstar as a multialternative fund. I found it's cumulative return for the period to be 67.01% with the average being 11.17%. KCMTX is co-run; and, one of its managers Parker Binion has started posting on our board. Parker's handle is @PBKCM in case you did not, and would like to, know. Interestingly, I was asked (in another thread) by another poster as to why I'd be a buyer of this fund? It is pretty simple ... in spite of its expense ratio ... it is putting up some good numbers for a multialternative fund plus it is currently carrying 5 stars by Morningstar. Folks, it cost money to actively engage the markets. It also reminds me of two other funds I invested in early on (but, no longer own) one being Ivy Asset Strategy and the other being Marketfield. They got to the size where they could no longer effectively position in a timely manner with the ever changing market conditions. So, I let them go as their performance waned.
Below is a link to the Morningstar report on Parker's fund.
http://www.morningstar.com/funds/XNAS/KCMTX/quote.html
Notice it is ranked in the top 1% on the rolling 1 year return period ... top 2% on year-to-date returns ... top 2% on the 3 year period ... and, top 1% for the 5 year period.
For me, the big question is ... How did a good skilled seasoned writer such as John Waggoner miss by not including Parker's fund? Perhaps, Mr. Waggoner reads the board? And, will kindly make comment.
And, so it goes.
I wish all ... "Good Investing."

seems to me outperforming the S+P 500 is not the critical test but rather that they outperform a 60-40 over a decent period of time / If they don't why bother

Thanks for posting, @Ted. You do a great job of finding interesting articles!
As for judging mutual funds, YTD is a bit arbitrary and too short IMO, although I understand why John would use the metric in an article this time of year.
Personally, I like to take a weighted average:
5/9 * the 5 year return
3/9 * the 3 year return
1/9 * the 1 year return
Because all three have the 1 year return, it actually gets the most weight, but not ridiculously so:
Last year = 33%
2nd Year = 22%
3rd Year = 22%
4th year = 11%
5th Year = 11%

Wow...ICMAX...Almost 60% Cash, 20% Bonds...ER=1.4% while the 1 Yr Investor Return was 1.44%. ... investors spent $2.475 M in management fees to achieve a CD rate return of 1.44% ...

Wow. Sombody’s holding more cash than I am!
:)

Even the bear market deviation metric (Identifying Bear-Market Resistant Funds During Good Times) is little help since there have been no bear market months, which M* defines as a 3% drop in S&P. It's been 21 months since last sighting, Jan 2016. Fourth longest stretch after 2007 (35), 1994 (27), and 1965 (22).

October marked 12th consecutive month with no annualized drawdown or downside in S&P 500 total return. Last time that happened was February 1959, nearly 60 years ago ... a time of Eisenhower, Alaska, Hawaii, and The Space Race.

FYI: Alternative funds, which mimic hedge-fund techniques to increase returns or reduce risk, soared in popularity in 2015 and 2016. How have they done this year?
Regards,
Ted
http://www.investmentnews.com/gallery/20171120/FREE/112009998/PH
1. AlphaClone International ETF (ALFI)
2. GMO Special Opportunities Fund Class VI (GSOFX)
3. RiverPark Long/Short Opportunity Fund (RLSIX)
4. Superfund Managed Futures Strategy Fund (SUPIX)
5. Boston Partners Emerging Markets Long/Short Fund (BELSX)
6. Longboard Alternative Growth Fund (LONGX)
7. Balter European L/S Small Cap Fund (BESMX)
8. Natixis ASG Tactical U.S. Market Fund (USMYX)
9. Swan Defined Risk Emerging Markets Fund (SDFAX)
10.AlphaClone Alternative Alpha ETF (ALFA)

Changes affect GPEOX & GPROX
http://hosted.verticalresponse.com/1760641/98fc148a65/578461017/01a33afb5b/

https://www.sec.gov/Archives/edgar/data/889284/000119312517349112/d497145d497.htm
497 1 d497145d497.htm STERLING CAPITAL FUNDS
LOGO
STERLING CAPITAL LONG/SHORT EQUITY FUND
SUPPLEMENT DATED NOVEMBER 21, 2017
TO THE CLASS A AND CLASS C SHARES SUMMARY PROSPECTUS,
INSTITUTIONAL SHARES SUMMARY PROSPECTUS,
CLASS A AND CLASS C SHARES PROSPECTUS,
INSTITUTIONAL SHARES PROSPECTUS,
AND STATEMENT OF ADDITIONAL INFORMATION,
EACH DATED FEBRUARY 1, 2017, AS SUPPLEMENTED
This Supplement provides the following amended and supplemental information and supersedes any information to the contrary with respect to the Sterling Capital Long/Short Equity Fund in the Class A and Class S Shares Summary Prospectus, Institutional Shares Summary Prospectus, the Class A and Class C Shares Prospectus, Institutional Shares Prospectus, and Statement of Additional Information, each dated February 1, 2017, as supplemented:
The Board of Trustees of Sterling Capital Funds has approved the liquidation of the Sterling Capital Long/Short Equity Fund (the “Fund”). The liquidation is expected to occur on or about January 26, 2018.
As of the date hereof, shares of the Fund are no longer being offered for sale.
Please contact your financial advisor or Sterling Capital Funds at 1-800-228-1872 if you have any questions.
SHAREHOLDERS SHOULD RETAIN THIS SUPPLEMENT WITH THE PROSPECTUSES
AND STATEMENT OF ADDITIONAL INFORMATION FOR FUTURE REFERENCE
SUPPLS-1117

Thanks!
The argument about ICMAX is interesting. If your time horizon is short and you can guarantee that the market will rise steadily (a feat that some technicians and timers believe is doable), then you should be fully exposed to the stock market. That's especially true if stocks are cheap. And that certainly eliminates from consideration absolute value funds, which only invest if they find suitable values. If your horizon is moderate and you have no idea of what lies ahead, there's an argument for varying your equity exposure based on what you can measure (valuations) rather than on what you can't (future returns). That's especially true if stocks are expensive.
The reason most investors do poorly is that they underestimate the risks they're taking and overestimate their abilities to navigate falling markets.
That said, I can read the numbers: 0.4% returns over 3 years, 4% over 5 years, 7.2% over 10 years (effectively the whole market cycle). But I knew what I was getting when I bought the fund: disciplined manager in a volatile asset class, long-term record of withdrawing from overpriced markets and buying into sharply correcting ones. Given that I didn't want to double down on my FPA Crescent (FPACX) position when Artisan SCV liquidated, this made sense for me.
But it might well make little or no sense for other investors.
As ever,
David

Thanks for this Thread.
Wow...ICMAX...Almost 60% Cash, 20% Bonds...ER=1.4% while the 1 Yr Investor Return was 1.44%.
Another way of putting it is that the fund investors spent $2.475 M in management fees to achieve a CD rate return of 1.44% (or $2.5 M of net gains for the entire fund). What could be more equitable?

In response to an emailed question, here are the US equity funds with the highest Martin ratios over the full market cycle that began in October 2007:
Reynolds Blue Chip Growth (RBCGX), 1.75
Intrepid Endurance (ICMAX), 1.67 (which I own shares of, fyi)
Yacktman Focused (YAFFX), 1.31
Eaton Vance Atlanta Capital SMID-Cap (EISMX),1.25, also a Great Owl
Parnassus Endeavor (PARWX), 1.20, Great Owl
Madison Dividend Income (BHBFX), 1.15, Great Owl
AMG Yacktman (YACKX), 1.14
Monetta Young Investor (MYIFX), 1.12
Brown Capital Mgt Small Cap (BCSIX), 1.11, Great Owl
Prospector Opportunity (POPFX), 1.08, Great Owl
Charles's "Great Owl" designation tracks the consistency with which a fund posts outstanding risk-adjusted returns. Technically, they are "top qunitile funds in their categories based on Martin for periods of 20, 10, 5 and 3 years, as applicable." All of the funds above have records of 10 or more years.
For what interest that holds,
David