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Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
  • Horizon Spin-off and Corporate Restructuring Fund to reorganize (updated 10/19)
    https://www.sec.gov/Archives/edgar/data/1318342/000139834417011044/fp0027752_497.htm
    497 1 fp0027752_497.htm
    Horizon Spin-off and Corporate Restructuring Fund
    Supplement dated August 28, 2017, to the
    Prospectus, Summary Prospectus and Statement of Additional Information (“SAI”)
    each dated September 1, 2016, as amended.
    IMPORTANT NOTICE ON PURCHASE OF FUND SHARES
    Effective as of the close of business on August 31, 2017, the Horizon Spin-off and Corporate Restructuring Fund (the “Horizon Fund”) will be closed to all investment, and the Horizon Fund’s transfer agent will not accept orders for purchases of additional shares of the Horizon Fund, either from current Horizon Fund shareholders or from new investors. Existing shareholders may continue to redeem Horizon Fund shares. If all shares of the Horizon Fund held in an existing account are redeemed, the shareholder’s account will be closed. This temporary closure is expected to last until September 18, 2017, at which time the Horizon Fund intends, subject to shareholder approval at the special meeting described below, to re-open as the Kinetics Spin-Off and Corporate Restructuring Fund (the “Acquiring Fund”), a newly created series of Kinetics Mutual Funds, Inc.
    As previously disclosed, the Board of Trustees of Investment Managers Series Trust (the “Trust”) approved an Agreement and Plan of Reorganization (the “Plan”) providing for the reorganization of the Horizon Fund into the Acquiring Fund. The reorganization of the Horizon Fund is subject to approval by its shareholders.
    The Trust has called a shareholder meeting at which shareholders of the Horizon Fund will be asked to consider and vote on the Plan. Shareholders of the Horizon Fund have been provided with a combined prospectus/proxy statement with additional information about the shareholder meeting and the proposed reorganization. The shareholder meeting has been adjourned to September 14, 2017. If shareholders of the Horizon Fund approve the reorganization, the reorganization is expected to take effect on September 18, 2017.
    Please file this Supplement with your records.
    Classes:
    LSHAX "A"
    LSHCX "C"
    LSHUX "I"
  • Market Leadership Strategy Update (QQQ & VEA)
    Hi @bee,
    Thanks for posting.
    I noticed, Money Market has moved up two places from 16th to 14th.
    In the past, I've done well buying the bottom listed asset other than cash. And, now that small caps are ranked below cash I'm thinking they just might be worth a buyer's look. Anyway, I'll be watching IWM closely this week.
    Old_Skeet
  • M*: 5 More Under-The-Radar And Up-And-Coming Funds
    FYI: Two passive options, an alternatives fund, and a new offering from a proven team are among the highlights.
    Regards,
    Ted
    http://news.morningstar.com/articlenet/article.aspx?id=823510
  • Despite Misleading Ads, Annuities Can Be Critical For Lifetime Income Planning
    FYI: (Click On Article Title At Top Of Google Search)
    If you're in the annuity industry, a client has probably walked into your office with preconceived notions about annuities for retirement planning, partly due to some critics' opinions on annuities that may not consider the needs of everyone. Critics believe variable annuities aren't right for anybody, and they convince people lifetime income retirement strategies are available elsewhere. For many people, that's not true
    Regards,
    Ted
    https://www.google.com/search?q=Despite+misleading+ads,+annuities+can+be+critical+for+lifetime+income+planning+investment+news&oq=Despite+misleading+ads,+annuities+can+be+critical+for+lifetime+income+planning+investment+news&gs_l=psy-ab.3...4410.8785.0.9089.16.16.0.0.0.0.97.1279.15.15.0....0...1.1.64.psy-ab..1.0.0.AZVNd1E4y_U
  • Webinar Video & Charts
    We've posted finally the video and charts from Wednesday Webinar:
    - Video of Webinar
    - Webinar Intro Charts
    ---------------------------------------------------------------------------------------------------------
    When: Aug 30, 2017 11:00 AM Eastern Standard Time (US and Canada)
    If you have not already done so, please register in advance for our MFO Premium Search Tools Webinar by clicking here.
    After registering, you will receive a confirmation email containing information about joining the meeting.
    Please plan on about one hour.
    Thank you!
  • Questions About Covered Call Options

    Exactly. Let the volatility pick up and premiums will come back on calls. I had to go out to Feb '18 to write a decent covered call as part of an options collar hedge I put on BA recently. So you can still find decent premiums if you either go "at the money" or go out several months 'till expiration.
    I do see puts are inching up in prices these days ... so the 'skew' tends to be on the downside, which suggests a pause or plateau in the markets since it costs a bit more to buy the protection these days.
    By contrast, during the GFC, I sold very out-of-the-money puts on some bigname companies (GE, CAT) that I wanted to own and did so at *insane* premiums - a few times I 'named my own price' and it filled immediately, which was scary to see. I never got put the stock b/c the market reversed itself in March '09 but wow, those were some insanely profitable winning option trades.
    Part of the option premia is volatility, which has been absent this year. Wait for it to come back before considering selling options again.
  • M*: A Downgrade For This Foreign-Stock Fund: (TBGVX)
    TBHDX has also lagged big time.
    What I find a typically M* in all of this (aside from the fact that my wife owns both TWEBX and TBHDX) is that yet again M* is all over the map.
    The facts are: (1) Tweedy is a very stable organization (they tout the fact all the time...); (2) Tweedy's hedging policy is well-established; (3) Tweedy freely admits upfront that they will have extended periods of under-performance, that they make their money in declining markets (its in every shareholder letter, its been noted on every shareholder call I've been on). So, Tweedy hasn't done much differently in the near or extended past. They also tout their deep bench of analysts, and continuity of analytic and portfolio staff (the departure of the analysts M* noted was transparently covered in Tweedy's shareholder communications). I suspect that AMG layer has something to do with that.
    On the M* side of the equation: (1) M* has had periods when they raved about Tweedy as a manager; (2) M* has typically favored the value orientation to portfolio management.
    In spite of this, M* now either sees the light, or decides to turn a a shoulder on Tweedy?
    Its not like TWEBX is the only fund I'd ever own in that particular space or is right for every investor. But if you're a conservative deep-value person, these are reasonable choices (the new-ish TBHDX, with its specialized mandate and deviation from a deep-value philosophy is another matter, however).
  • M*: A Downgrade For This Foreign-Stock Fund: (TBGVX)
    It's an interesting question whether a 72 year old manager faces imminent retirement in 2017. People are living longer and can work a lot longer than they used to especially if they're wealthy and have access to the best doctors and treatments. It strikes me as a bit ageist to assume this manager, Will Browne, is leaving soon if he hasn't said that he is. He may love the work and could still be good at it for quite a while. There is an element of uncertainty to it but then he has younger comanagers helping him out. So I'm not sure this downgrade is justified on those grounds. The fees and currency issues may be more relevant.
  • M*: A Downgrade For This Foreign-Stock Fund: (TBGVX)
    FYI: We're lowering our Analyst Rating to Bronze for Tweedy, Browne Global Value, due to relatively high expenses and some management uncertainty on the horizon.
    Regards,
    Ted
    http://news.morningstar.com/articlenet/article.aspx?id=823302
    Lipper Snapshot TBGVX:
    http://www.marketwatch.com/investing/fund/tbgvx
    TBGVX Ranks #13 In The (FLCV) Fund Category By U.S. News & World Report:
    https://money.usnews.com/funds/mutual-funds/foreign-large-value/tweedy-browne-global-value-fund/tbgvx
  • Hey, I directed some folks here for fund and related investment discussion. Is this still valid?
    "The overall comments were of this type:
    1. They didn't mind the mix of the political as relative to effect upon the markets. They think this is indeed valid. But, obviously as we know too; when the topic of a statement or question about politics moved away from the investment effect and the thread became a shout down about politics.
    2. Threads that started with a direct question about a fund or funds and others opinions; but that also wandered away from the original question or statement into some other subject matter, not really related.
    3. Personal attacks, the cat fights..... "

    @Catch22, Thanks for the insights.
    Afraid I didn't comprehend your "hypothetical" case very well. But as to your overall more general skeleton (restated above) I think you are correct. Perfectly fine threads about mutual funds or investing do seem to go off the rails quite often. I don't have an easy answer and I'll plead guilty as charged on my own account. I think it (staying focused on the subject of the thread) is something all of us can work on.
    On the other hand, if your friends were to come on board and ask specific questions from the standpoint of a "newbie" I've no doubt they'd be well received by the veterans and treated to a multitude of interesting and accurate answers. Afraid it's the nature of the beast that those of us who've been around a while often end up grousing with one another over no good reason.
    Can't speak to other forums. This is the only one I've ever developed an interest in. Personally, I don't even like the statistical presentations at M* - and I've never read or participated on their board - although some here have said very fine things about that forum.
    Catch, I've always considered you a very positive influence here. One thing I'll note is that the markets have been boring for a long time. Slight drift upward. No sharp corrections. Bonds continue to slog along at impossibly low rates and high valuations. And, indexing seems to rule the day. So there's not a lot to excite interest. That may help explain some of the unnecessary diversionary tactics you've noted.
    FWIW
  • Hey, I directed some folks here for fund and related investment discussion. Is this still valid?
    Hi @Maurice
    Thank you for the reply.
    The overall comments were of this type:
    1. They didn't mind the mix of the political as relative to effect upon the markets. They think this is indeed valid. But, obviously as we know too; when the topic of a statement or question about politics moved away from the investment effect and the thread became a shout down about politics.
    2. Threads that started with a direct question about a fund or funds and others opinions; but that also wandered away from the original question or statement into some other subject matter, not really related.
    3. Personal attacks, the cat fights.....
    I will offer my own "thread start" example. I have not and will not post such a question here.
    As Mr. Trump and the Republican party has had and continues to have problems regarding any resolution related to a "changed" healthcare legislation; what impact will this have upon healthcare sector investments? I suspect not all healthcare sectors would have the same investment pluses or minuses from changes.
    This is a valid question for our house, as 35% of portfolio at this time, is invested in various healthcare sectors. I imagine this thread would blow up regarding argues ranging from libertarian to communist forms of "healthcare" for the regular folks.
    Getting close to an unwind of the more active involvement with our portfolios anyway. So, "Happy Trails to You, until we meet again....." will be the future song relationship for this house.
    ADD: I had a few email exchanges with Roy (FundAlarm) over the years about a few posts. :)
    Take care,
    Catch
  • What Device Do You Use To Buy Or Sell Funds, ETF's, Stocks, Bonds, etc.?
    Hi Guys,
    While what device is used to complete a trade is the specific topic under discussion, that's a detail that doesn't inspire me too much. A far more meaningful discussion would center on how a decision to trade is made and what tools are used to help make that decision. I'll focus my reply on that issue.
    Based on my earlier posts, you guys all know where I'm going. The single most useful tool to guide the investment decision is a well organized and easy to use Monte Carlo simulator. All kinds of what-if scenarios can be quickly explored in terms of options and likely outcomes. These simulators output the range of possible outcomes and the odds of a successful survival for specified timelines.
    Here are two Links that get you to a free simulator that explores 1000 possible scenarios for every case examined:
    http://www.flexibleretirementplanner.com/wp/
    https://www.portfoliovisualizer.com/monte-carlo-simulation
    I have used both tools extensively. They are reliable codes. These websites have been functional for many years.
    Explore the impact of inflation rates, withdrawal rates, estimated returns, the standard deviation of those estimates, and various timeframes on endpoint outcomes. These can all be evaluated in just minutes.
    Making minor adjustments to a proposed plan can enhance a survival likelihood significantly. Small changes do matter, and these tools can guide you in the right direction. Avoiding a dangerous portfolio decision is priceless. Pitfalls are everywhere.
    Please consider adding these tools to your decision making toolkit. They'll contribute to your understanding of what is important and what is not so critical. Your comfort zone will be increased. Relax!
    Best Wishes
  • What Device Do You Use To Buy Or Sell Funds, ETF's, Stocks, Bonds, etc.?
    I've checked brokerage balances, maybe even made trades from transit stations. Just killing time waiting for trains. Platforms used to have payphones, and brokers didn't add a surcharge for automated phone orders (800 numbers).
    Though I don't think this is quite what you had in mind for trades executed by phone.
    A few years ago I made a Roth conversion in Asia, when the market swooned. (On my laptop using a friend's home network.) Had the market taken a nosedive while we were away last month, I would have done the same thing.
    Never anything unplanned though. Not like the ad (which always reminds me of the downing of a US plane in Hainan, 2001).
  • What Device Do You Use To Buy Or Sell Funds, ETF's, Stocks, Bonds, etc.?
    An interesting question might be: "What are some unusual settings in which you've executed trades?"
    I've placed, modified, or cancelled 'tactical' orders/trades[1] on my (secured) phones from trains, parking garages, and yes, even once while curled up under the blanket while home sick in wintertime. ;) But those situations don't happen often and I'm usually expecting them.
    [1] by 'tactical' I mean in response to some major incident/event/news.
  • What Device Do You Use To Buy Or Sell Funds, ETF's, Stocks, Bonds, etc.?
    Not sure about what's being asked here.
    These days, all devices are computers, it's just the form factor and the OS that varies. If you're not an Apple lover and are worried about Android, you can use a Windows-based cell phone. (If you don't trust Windows/Microsoft, then you won't use a Windows-based PC either.)
    Certainly there are exceptions (e.g. Amazon just stopped selling BLU phones due to continuing security concerns), but for the most part, I consider the particular OS/device immaterial with respect to security.
    I'm more concerned about back end breaches. For example, this recent exposure by Scottrade of 20K customer's info.
    Networking is a different question. I rarely do anything with financial sites while away from home - whether that is on a PC, tablet, or smart phone. When I do, I try to limit the use and select theoretically less risky networks (e.g. B&B vs. 300 room hotels). I don't even have cellphone data service. The $20 smart phone I carry has no service at all, but is good to use in Starbucks (with that $2 iced tea and free refills) to read headlines using wi-fi.
    Form factor - any "real" work is done on large-ish screens (1920x1200) with many windows open (spreadsheets, notes, brokerage pages, etc.) My laptop is semi-permanently attached to an external screen/keyboard/mouse. (Only detached for travel.)
    The one financial application for which I'll use a cellphone (networked via wi-fi) is depositing checks. The apps generally don't run on laptops, and it's easier to take a picture of a check with a cellphone than with a tablet. Though it's still easier to deposit checks in person if I happen to be passing by my broker.
    Regarding Lombard brokerage ad - Lombard was bought in 1996 by Dean Witter Discover, which branded its online brokerage Discover Brokerage Direct. In 1999 Discover ran this commercial:
  • Indexing In America: Why It Took Root Here
    FYI: Tocqueville laid out why Americans, sooner than any other nation, would prove apt to embrace indexing 150 years later.
    Regards,
    Ted
    http://news.morningstar.com/articlenet/article.aspx?id=823295