FYI: TALKING TO A BROKER or insurance salesman? Here are 10 things you’ll likely never hear:
Regards,
Ted
http://www.humbledollar.com/2017/09/unheard-of/

FYI:
Regards,
Ted
http://ritholtz.com/2017/09/ray-dalio-book/
"Principles: Life and Work: MFO Amazon Link:
https://www.amazon.com/Principles-Life-Work-Ray-Dalio/dp/1501124021/ref=sr_1_1?ie=UTF8&qid=1505123283&sr=8-1&keywords=ray+dalio+principles

Now, that would have been some bet --- forget SPX, gimme $10M if a savvy-managed bond fund beats your group of hedge funds.
(PIMIX beat SPX by 50%!)
Ivascyn is an even bigger bfd than many already know. The last four bullish years (actually a bit less), PDI has beat SPX by almost 11%.

Hi Guys,
I don't fear Artificial Intelligence whatsoever, especially in the active mutual fund management business. Over a very, very long timeframe, AI might become a problem if its influence becomes overwhelming and without human interaction and control, but I will be long gone before that becomes even a remote possibility.
Change is inevitable, and that change will cause disruptions. Jobs will be lost, and jobs will be discovered. That's the lesson history has continually taught us. Making winning choices for the unknown and unknowable future is always iffy duty. Some you win and some you lose. That's why insurance and flexibility work to limit the downside. Good decision making includes planning for the unexpected.
Rules can be helpful here, especially in the mutual fund investment arena. I had to fight myself to use the word "arena" rather than "discipline". Rules are important like keep costs down and trade infrequently, but being a total slave to these rules can generate a disaster. That's when flexibility enters the equation. A good general knows or feels when to abandon a plan. A good investor needs those same instincts. Those instincts are enhanced by experience, by communications with other seasoned investors, and by time-in-the-field.
Easy for me to say, but difficult to implement. Just review the failed relative to benchmark records of over 80% of active fund managers when examined over a 10 year period. That extended timeframe is needed to properly measure the difference between skill and luck. The skill set of many fund managers is in serious doubt. But there are some winners.
Best Wishes

Musk isn't the only one:
https://washingtonpost.com/news/the-switch/wp/2015/01/28/bill-gates-on-dangers-of-artificial-intelligence-dont-understand-why-some-people-are-not-concerned/?utm_term=.3e9a5fb47231

Here's the filing, clear as mud:
https://www.sec.gov/Archives/edgar/data/34066/000093247117005317/activeetfapp_clean.htm
I see no reference to Vanguard's patent that enables a shares of an individual fund to be sold both directly to investors (OEF shares) and in the secondary market (ETF shares).
The marketing section of the filing says that an ETF "Fund will not be advertised or marketed or otherwise 'held out' as shares of a traditional open-end investment company or a mutual fund." That seems to be different from what Vanguard does now with its ETFs.
For example, the web page for VOO holds it out as shares of a Vanguard 500, a traditional open-end investment company: "Also available as Admiral™ Shares and Investor Shares mutual funds."
So I'm guessing (as I said, clear as mud) that these are not going to be ETF shares of existing funds.

codifying a manager's thinking into rules

Guess that Elon Musk won't be investing in active ETFs since he is not big fan of artifical intelligence.

All ratings have been updated on MFO Premium site, including MultiSearch, Great Owls, Fund Alarm (Three Alarm and Honor Roll), Averages, Correlation, Dashboard of Profiled Funds, and Fund Family Scorecard.

FYI: The U.S. Securities and Exchange Commission (SEC) on Friday said it planned to approve an application that would let Vanguard Group, the world’s second largest asset manager, offer exchange-traded versions of its actively managed mutual funds.
Regards,
Ted
http://www.reuters.com/article/us-vanguard-etf/sec-plans-to-approve-vanguard-request-to-list-actively-managed-etfs-idUSKCN1BJ2OE

FYI: (Click On Article Title At Top Of Google Search)
Active shops respond to technology's threat by codifying a manager's thinking into rules that can be indexed.
Regards,
Ted
https://www.google.com/search?source=hp&q=Active+Managers+Are+Getting+to+Work&oq=Active+Managers+Are+Getting+to+Work&gs_l=psy-ab.3..33i22i29i30k1l4.4293.4293.0.5794.3.2.0.0.0.0.82.146.2.2.0....0...1.2.64.psy-ab..1.2.146.6..35i39k1.fplh2oml8LY

VintageFreak
You mention the possibility of the fund liquidating, however the fund webpage is indicating about $1.5 billion in assets, do you see any indication that liquidation is being considered.
Thanks

I was lamenting aloud :-). Thanks for making me feel better. I owned another fund of theirs that closed because no one would invest in it. So wondered if a big investor pulled out assets out of CIPMX and is why the fund closed.

M* article of 12/2015 predicted this find might close soon.

https://www.sec.gov/Archives/edgar/data/1016073/000119312517278810/d456584d497.htm
497 1 d456584d497.htm 497
Driehaus Mutual Funds
Driehaus Micro Cap Growth Fund *DMCRX
(the “Fund”)
Supplement dated September 7, 2017 to
Prospectus for the Fund dated April 30, 2017 and
Summary Prospectus for the Fund dated April 30, 2017
The Board of Trustees of the Driehaus Mutual Funds has approved the closure of the Driehaus Micro Cap Growth Fund (the “Fund”) to new investors, except as described below. The closure will be effective immediately after 4:00 pm Eastern Time on September 29, 2017.
You may purchase Fund shares and reinvest dividends and capital gains you receive on your holdings of Fund shares in additional shares of the Fund if you are:
• A current Fund shareholder;
• A participant in a qualified retirement plan that offers the Fund as an investment option or that has the same or a related plan sponsor as another qualified retirement plan that offers the Fund as an investment option; or
• A financial advisor or registered investment adviser whose clients have Fund accounts.
You may open a new account in the Fund if you:
• Are an employee of Driehaus Capital Management LLC (the “Adviser”) or its affiliates or a Trustee of Driehaus Mutual Funds;
• Hold shares of the Fund in another account, provided your new account and your existing account are registered under the same address of record, the same primary Social Security Number or Taxpayer Identification Number, the same name(s), and the same beneficial owner(s); or
• Are a financial advisor or registered investment adviser whose clients have Fund accounts.
These restrictions apply to investments made directly through Driehaus Securities LLC, the Fund’s distributor, as well as investments made through intermediaries. Intermediaries that maintain omnibus accounts are not allowed to open new sub-accounts for new investors, unless the investor meets the criteria listed above. Once an account is closed, additional investments will not be accepted unless you meet the criteria listed above. Investors may be required to demonstrate eligibility to purchase shares of the Fund before an investment is accepted. The Fund reserves the right to (i) eliminate any of the exceptions listed above and impose additional restrictions on purchases of Fund shares; and (ii) make additional exceptions that, in the Adviser’s judgment, do not adversely affect its ability to manage the Fund.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
For more information, please call Driehaus Mutual Funds at (800) 560-6111.

If the future is truly uncertain, why should investors have a long bias in their portfolios? All we know is that in the past this strategy has worked, not that it will work in the future. Applying some blind probability analysis based on that past performance without asking why that performance occurred denies the existence of that uncertainty. Investors need to figure out if the same assumptions that drove stocks up in the past still apply today and will continue to drive them up in the future.
Among those assumptions--1. the continued dominance of America's largest publicly traded multinational corporations 2. If yes to one, a fair or cheap price paid for a piece of that dominance, i.e., valuation 3. strong or moderate macroeconomic conditions--low or falling interest rates, modest inflation, decent GDP growth, employment 4. stable or improving geopolitical conditions--no populist outrage, favorable tax rates, no losing side of wars, no cataclysmic climate disasters, zombie apocalypses, etc.
All of these complex variables factor into the analysis into the ongoing might of the U.S. market. Rather than just empty performance numbers, real human history is what needs to be studied, having an awareness that the emergence of America as the dominant global economic superpower in the last 100 years is actually a rather unusual thing, which is by no means assured in the future. Even more unusual is the rise of the modern multinational corporation--a relatively new thing historically. Who's to really say how long the good times for stocks will last?

Sure, because Morgan Creek was so successful at this kind of alternative investing in the past:
https://sec.gov/Archives/edgar/data/1559098/000139834417003043/fp0024439_497.htm

"Here’s another beauty, also at the Journal, about a fund manager who is currently in a 52% drawdown from the peak and still has the chutzpah to be lecturing others ... "
Grandma stashing her savings in a cookie jar over the past decade would be ahead of this renowned investor.
Rule# 1: "Don't lose money." (Perhaps not applicable in the world of sophisticated investing?)

FYI: Like many active managers, Mark Yusko of Morgan Creek Capital Management LLC has some serious gripes about the rise of exchange-traded funds and the ascendancy of passive investing.
And like many of those managers, he’s also starting his own ETF to cash in on their popularity -- but with a twist.
Regards,
Ted
http://www.fa-mag.com/news/big-critic-of-etfs-planning-to-launch-one-of-his-own-34517.html?print