Count me among those who don't see the appeal with OSTVX. Compared with Wellington, OSTVX:
- tracks moderately closely (correlation coefficient r of 0.92, coefficient of determination R^2 of 85%)
- is a bit more volatile
- generally underperforms (except for a period of about a year - mid 2012 to mid 2013)
- much more expensive
See this Portfolio Visualizer analysis page for correlation, std deviation and lifetime performance comparisons, and this M* performance chart for relative performances
It's not as though I don't find funds like this interesting. I used to follow Greenspring GRSPX. (Another fund with a fixed income sleeve that is low quality, shorter duration.) At the end of the day, ISTM what matters is performance.
That's not to say that portfolio allocation doesn't matter, but there are solid multi-sector funds that one can use instead to increase one's exposure to that portion of the fixed income market. (Even, dare I say, OSTIX.)

OSTIX is one of the best moves we made 14 years ago. Consistent, conservative, cautious management. M* still does not understand this fund, and that is fine by me.

@TSP_Transfer,
Thanks for the tip on CCAPX, which is an interesting global allocation fund, but really not in the ALT space. The CCAPX manager, Ryan Caldwell, served as the assistant manager of WASAX when it was on top of the world (1/2007 - 6/2014), and during his tenure, this fund beat the heavy hitters like MALOX and SGIIX, and even the wannabes, like WGRNX.
Test trading for CCAPX indicates that it is not available at Scottrade and Wellstrade, but it is available in TDAmeritrade and Fidelity retirement accounts with no minimum + TF. At an actual 1.15% expense ratio, this fund has very reasonable expenses.
Kevin

PTIAX
Performance Trust Strategic Bond Fund
4Q 2016 | COMMENTARY
While interest rates and spreads have waxed and waned somewhat since the crisis, volatility has been relatively mild, and the xed-income landscape has not changed fundamentally since the Fund launched in 2010. Consequently, our opinion on where value lies within fixed income has not changed much. Someday it may, but we’re not there yet. We still believe that seasoned non-agency residential mortgage backed securities (RMBS) offer more yield with less real world credit risk than any other sector in the fixed income space.
Static Structured Credit “Portfolio Defense” Allocation Performed Well During Rate Rise
Increased Tax-Exempt Municipal Allocation
Tax-exempt municipal bonds became particularly attractive post-election after the sell-off in bonds. After interest rates rose, we saw tax-exempt municipal bonds as the most effcient way to lock in higher rates
http://ptiafunds.com/documents/ptiax_commentary.pdf

Vanguard founder John BogleVanguard founder John Bogle.Vanguard:
"These active managers have a real business problem. They are losing money. Vanguard accounts for over 100% of the cash flow in the industry (since 2014). One firm. All the other firms in the industry together are losing money, losing cash flow. Of course they don't like it. I understand that. But it was never my design to build a colossus.
I'm a small-company guy, but I happen to have two great ideas. One is a mutual company, which is focused not on the management company shareholder but on the fund shareholder. That's the structural thing we bring to the table. And the strategic thing we brought to the table was the index fund. We created the first index fund, and it took 20 years before it started to catch on in, the mid-1990s, and now it’s dominating everything we say in this financial field, and it's changing it forever."
Business Insider Link to Interview:
businessinsider.com/vanguard-jack-bogle-401k-active-management-index-investing-2017-1

CCAPX Manager had good run @ WASAX .In 14 months has attracted $375 mil.Transaction fee @ popular brokerages.On my watch list.As @00BY observes, monitor in evolving mkt conditions.
https://www.chironfunds.com
https://www.chironfunds.com/Data/Sites/3/media/docs/Chiron_FactSheet.pdfhttps
https://www.chironfunds.com/Data/Sites/3/media/docs/Chiron_Portfolio_Composition.pdf

I am more of a stock guy than bond fella; and, although I do have a good diverse bond side within my portfolio I understand stocks better. With stocks now being a little overvalued, by my market barometer, this perhaps leave bonds a little undervalued but I don't believe they are so undervalued that they have become oversold.
With this, if your portfolio has become unbalanced with respect to your asset allocation ranges then you might wish to consider this an opportunity to rebalance. Recently, my son brought me his rebalance notice from his 401k provider where they sold off some of his stock funds and bought some bond funds to rebalance his allocation.
For me, I not buying bonds at this time. If I were to rebalance by selling some equities I'd go to cash (or convertibles) with the sell proceeds over buying traditional bonds. I'm thinking with earnings improving I am going to continue to overweight stocks at this time within my own portfolio. Thus far this year my reference sources reflect high yield being the best performer within bonds; but, convertibles have thus far trounced high yield.
Skeet

PONDX and PDI are up 1.6% and 2.7%. Why are you DoubleLine guys not in them in addition or instead?

Many expect the market to go higher. As DJIA reached new high last week, I rebalanced more back into bonds and cash, ~25% and 5%, respectively.
Any idea on how DoubleLine Total Return and Core bonds are doing?

DLTNX 3 months: down -1.44%
DLFNX 3 mos: -1.35%
For comparison: DODIX, 3 mos: -down 0.74%.
MWTRX 3 mos. -1.88%.

DFLEX happens to be up 0.66% over the last 3 months.

@VintageFreak,
I own a foothold in WHGIX, but a 15% position in the best fund in that space, PRWCX.
Kevin

@davidrmoran,
I listen to Meb Faber's podcasts, which are flat-out excellent. He is very down to earth and in no way is he influenced by celebrity. In show #36, he was particularly bullish on non-US developed equities, as they have lagged US equities for the trailing 1-, 3-, 5- and 10-year periods, which is apparently a very unusual period of underperformance. And he said that the CAPE method of investing beats the market 60% of the time, which is pretty decent as I see it. So DSEUX is now on the top of my potential buy list.
Kevin

Many expect the market to go higher. As DJIA reached new high last week, I rebalanced more back into bonds and cash, ~25% and 5%, respectively.
Any idea on how DoubleLine Total Return and Core bonds are doing?

DLTNX 3 months: down -1.44%
DLFNX 3 mos: -1.35%
For comparison: DODIX, 3 mos: -down 0.74%.
MWTRX 3 mos. -1.88%.

I continue to hold EM bonds, a pretty good slug. Served me well, even after I took a needed radical step some years ago in order to make-over my portf. Also hold a global bond fund. No more domestic "core" fund, though. I also get domestic bonds via my two balanced funds: PRWCX and MAPOX. Others referred to above are: PREMX and PRSNX. These two, combined, are 25.51% of portf. Reinvesting everything continues, still.

One problem I have with the data is its starting point (2000 market top). Index fund often get crushed in downturns in the market since these types of fund remain totally invested. Managed funds have the opportunity to make risk on/ risk off decisions. Moving the data backwards or forward three or four years would have improved the index funds long term performance compared to these managed funds.
Also, not considered by the author are low cost managed allocation funds. Vanguard has two fine choices, VWINX and VWELX.
Below are two charts that compare VWINX, VWELX and VTSMX over the 2000 - 20017 time frame and then a little further back. It illustrates that picking investment timeframes can make a huge difference in results. Timing plays a significant role with index funds since they don't manage market valuation risks, they are always fully invested.
This charts shows that buying at the top of the market is a real killer:

Compared to:

@FundStudent, Thanks for the interview link. I agree with everything JG said, as equities are likely to go higher, and may stall when the 10YR note gets to 3%. JG usually has a good feel for the FI and equity markets.
Kevin

What! They've had quite a bounce.
3% on the 10 year - I said that!

I am looking at starting a position in PXAIX - Pimco Multi Strategy Alternative.
This fund is composed of several Pimco alternative funds plus individual long/short
positions. The expense ratio is a reasonable 1.15%.
Comments are appreciated.
Mitchelg

Don't you wish they'd just tell you what changed?
FYI - the fee waivers for the California and NY funds were reversed (last paragraph). Instead of holding expenses to 0.29% (Calif) and 0.61% (NY), the fees are being held to 0.61% (Calif.) and 0.29% (NY).
Also changed were the dates in the first paragraph (since the updated supplement came out a day later). That paragraph added the sentence:
"This Supplement corrects and supersedes the supplement dated January 26, 2017 to the Prospectuses dated January 15, 2016 for the Portfolios."
If you can see these changes, your vision is at least 20/20.