M*: Fantastic 50 I like his argument, in the follow-on article, for why Fidelity Capital Appreciation (FDCAX) is no longer a Fanny Fifty Fund: it has been doing too well. There's an incentive fee built into the fund's price structure; if performance sucks, the e.r. drops. If performance soars, the e.r. rises.
Here's the reason for dropping the fund: " In 2013, the fund outpaced that index by 2.47 percentage points, upping the expense ratio by 4 basis points to 0.81%. This increase moved the fund's expenses beyond the category's cheapest quintile..."
David
Mod. Alloc. fund not named PRWCX (TRowe Price Cap. Apprec.) Yes, I too always thought "moderate allocation" investors would find a -36.5% drawdown a bit hard to stomach. That said, DODBX dropped 45.8% during this time and scores a UI of 14.9. While VWELX dropped "only" 32.5% with its UI of 9.2. So, your caution is a good one. No question though that PRWCX beat them all from an absolute return perspective.
Bill Gross’s Bond Fund At Janus Lost 2.9% Monday "And he's initiated March 2015 futures positions? Wouldn't that have to be a March 2015 pasts position?"
LOL
Bill Gross’s Bond Fund At Janus Lost 2.9% Monday Well, there you go: I just checked his portfolio at Morningstar. It looks like his 3% short on "09/16/15 R 60 Markit Cdx.Na.Ig S24 5y Ba" probably reverse-arb'd his 3% long "09/16/15 P 100 Markit Cdx.Na.Ig S24 5y Ba" while the 3% long position reported for "E-mini S&P 500 Index Future Mar15" goofed his 10% e-mini short on S&P September futures.
There is, by the way, an entire portfolio that looks just like that.
And he's initiated March 2015 futures positions? Wouldn't that have to be a March 2015 pasts position?
David
What To Do During Market Volatility? Perhaps Nothing.
Bill Gross’s Bond Fund At Janus Lost 2.9% Monday The M* blurb says little. Certainly yiou can't judge a manager on such short term results.
Without knowing more, the losses probably relate to being concentrated in a relatively small number of holdings. Stuff happens when you concentrate.
I'd also guess his foreign holdings must be largely unhedged, exacerbating any currency losses.
My DODLX (global bond) took a hit, but less than 1% on Monday. The junk funds I watch didn't do that badly either. For whatever reason, bonds didn't seem to benefit much from the equity rout.
