MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register
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.
  • FAIRX-drops down -9.6 today
    Well if you like FAIRX and Bruce Berkowitz, you should like them a LOT more today. And see it as a big opportunity to buy your favorite manager and fund at a large discount. That's the value investing way. But I'm not sensing this........Surely FAIRX investors knew the risks of investing in Fannie, Freddie, and the other risks in FAIRX.
    I don't like anyone. I'm a first class B******. If I could trade daily I would buy ETFs. I only invest in mutual funds because I don't have a viable alternative that fits my lifestyle.
    VintageFreak VintageFreak in Fund Discussions
  • Up every month in 2014 and off to a good start in October
    Yes, of course the junk open end munis. Surprised there hasn't been a bigger bandwagon for junk munis here. Probably a good thing though. I've been harping on junk munis since January and so as not to come across as a zealot, won't mention them again. Funny thing about zealots. Whatever they endlessly preach about - be it a particular fund or asset class such as gold/ silver or whatever - it eventually comes back to bite them. They then seem to fade away or worse, become a zealot about something else. The worse kind of zealots are those who don't let go, even after the object of their affection vaporizes their capital.
    Definition of Zealot - A person who has very strong feelings about something and wants other people to have those same feelings.
    Junkster Junkster in Fund Discussions
  • FAIRX-drops down -9.6 today
    VF, so I am not an expert but here is my thought. FAIRX owns preferred. So if preferred won't pay a dividend, my guess is that it is worthless and was priced as such. However, FAIRX and others bought preferred a while ago hoping to sue the gov and restore dividend. I guess others pilled in the trade hoping to make some money and thus driving price of preferred up. when suit against gov failed and the gov will keep all profits/dividends from fannie and fredie, people sold their preferred shares driving shares down again.
    "The Obama Administration wants to wind down the mortgage giants that have been operating in conservatorship since receiving $188 billion from the Treasury Department amid the financial crisis. But Fannie and Freddie paid the bailout out money back and are now hugely profitable. Perry and Berkowitz bought Fannie and Freddie junior preferred securities a long time ago in the hopes that some of those profits would eventually flow to them. "
    Government response: "Yeah....that would be a no."
    http://www.zerohedge.com/news/2014-10-01/ackman-berkowitz-slammed-after-fannie-mae-plunges-60-court-ruling
    "Pershing Square has about 11 percent economic exposure to Fannie Mae and Freddie Mac shares based on common stock outstanding, a stake first disclosed last year. While lawmakers are weighing methods to wind down the companies, Ackman said mortgage rates would jump without the government-sponsored enterprises.
    “There is no viable alternative,” to Fannie Mae and Freddie Mac, Ackman said today in a Bloomberg Television interview with Stephanie Ruhle after the Sohn presentation. “Preserving the 30-year prepayable fixed-rate mortgage -- it’s like the bedrock of the housing system -- is critical."
    We think the only way to do it is by preserving Fannie and Freddie.”
    $23 to $47... or zero. Because while there may be no viable alternative, Ackman forgot one key thing: his adversary is the US government... "
    scott in Fund Discussions
  • Doubleline CEFs - DSL vs. DBL
    Thanks for the explanation and clarification. Much appreciated.
    if the fixed income fund's objective is current income -- then you pretty much covered ALL fixed income funds. trust me i know... i read (if not write) these for a living. for the equity fund, an investment objective would be capital appreciation. just like large cap equity could be anything in the world, so could be unconstrained bond funds or any other fixed income vehicles. DBL is a mortgage fund -- that's doubleline's primary expertise. its discount is less than that of DSL because.... wait for it... it IPO'd earlier -- in the go-go pre-2013 fed taper tantrum. so it had physically more time to develop better pricing. this is very similar to PDI (an ivascyn mortgage fund) vs PCI. the latter is more diversified (currently also with ivascyn) and IPO'd AFTER PDI, i.e. less time to develop decent pricing.
    for full disclosure, i own a decent chunk of PDI, smaller one of DSL, and a tiny bit (picked up in the latest swoon) of PCI.
    The only funds that should be similar to identical are those that not only managed by the same PMs, but have identical names, such as Pimco Income, Pimco Income I, Pimco Income II, etc.
    Hope this clears your confusion.
    BWG in Fund Discussions
  • October is up
    Hi LLJB.
    Yep. I believe current and new subscribers before 1 Jan will get current rate forever. Those subscribing from 1 Jan and after will pay higher price.
    That's what I thought Meb told me at the conference...and, here is a post confirming:
    http://mebfaber.com/2014/09/17/the-best-investment-newsletter-out-there/
    Charles Charles in Fund Discussions
  • FAIRX-drops down -9.6 today
    VF, investors such as Berkowitz, Ackman,.. were suing in order to get the gov to restore dividend (or something along those lines). The gov won in this case and will keep all profits (for now, we shall see). so stocks got creamed. FAIRX owned mostly pfd which I am assuming is preferred. I guess that got creamed also.
    Sorry if I'm being dense. Government not restoring dividend. So people who bought stock thinking government WILL restore dividend, decided to sell. I think I got this.
    Now my question is when stock gives dividend, doesn't it's price drop by equivalent amount? So how much dividend really were investors expecting that they got pissed and knocked stock down so much?
    VintageFreak VintageFreak in Fund Discussions
  • Question re: Sarofim and SPHQ ETF
    Thank you, David, for your Oct 2014 profile of Sarofim Equity - SRFMX.
    Link: http://www.mutualfundobserver.com/2014/10/sarofim-equity-srfmx-october-2014/
    What do those who share David's enthusiasm for Sarofim, and Sarofim's enthusiasm for Quality Stocks, as identified by the S&P High Quality Index [1], think about the Powershares exchange traded fund, SPHQ ?
    Also - the E.R. on SPHQ is currently 29 bps.
    [1] Links with info on Quality Stocks and ETF: [2] Note: There is a similar document on the Dreyfus site:
    ibartman in Fund Discussions
  • FAIRX-drops down -9.6 today
    What am i missing. If investor lawsuits were dismissed, WTF should the price drop? Isn't that good news for the stock? Shouldn't it go up?
    VintageFreak VintageFreak in Fund Discussions
  • FAIRX-drops down -9.6 today
    A very bad day for Bruce Berkowitz:
    FAIRX Fairholme -9.6%
    FAAFX Fairholme Allocation -10.8%
    FOCIX Fairholme Focused Income Fund -6.72%
    rjb112 in Fund Discussions
  • FAIRX-drops down -9.6 today
    Ouch..that really hurts. About 10% of the holdings took a 50% haircut. All the other holdings were also down. That's what a concentrated portfolio can you for/to you.
    Won't sell right away, but may certainly reduce on a (dead cat) bounce.
    PRESSmUP PRESSmUP in Fund Discussions
  • FAIRX-drops down -9.6 today
    FAAFX down 10.8%.
    Fairholme Focused Income Fund FOCIX
    -6.72%
    image
    rjb112 in Fund Discussions
  • FAIRX-drops down -9.6 today
    Fannie Mae.
    http://news.morningstar.com/all/ViewNews.aspx?article=/MW/TDJNMW20141001152_univ.xml
    edit: Derp. I should read more posts...
    mrdarcey mrdarcey in Fund Discussions
  • FAIRX-drops down -9.6 today
    FAAFX down 10.8%.
    BWG in Fund Discussions
  • October is up
    Thank you David, Charles and all those who contributed to another enjoyable read. One question related to your comment that "Speaking of insight into hedge funds, subscribers joining his The Idea Farm after 31 December will pay a much elevated $499 annually". I wasn't sure if you were suggesting that someone who subscribes by the end of the year never pays the increased price or whether it was just that subscribing before year-end gets you the first year at a lower rate. I checked the website and there wasn't anything to suggest the subscription rate is fixed once you subscribe but thought I'd ask if you know. Thanks!
    LLJB in Fund Discussions
  • PTTRX closed flat, PIMIX/PONDX closed -.47% Hmmm.
    it wasn't... bond funds accrue daily dividends in their NAV, not like stock funds. the decline you saw was a market decline - movements in spreads -- see my previous explanation.
    Update for PIMIX / PONDX
    ---PIMIX, dividend of 0.05550 per share, declared on 09/30/2014
    ---PONDX, dividend of 0.05266 per share, declared on 9/30/2014

    Yeah, but what is the ex-dividend date?
    When was the NAV lowered as a result of the income coming out of the fund?
    "Declared"?
    Typically there is a Date of Record, An Ex-Dividend Date/Re-investment date, and a Payable Date.
    fundalarm fundalarm in Fund Discussions
  • PTTRX closed flat, PIMIX/PONDX closed -.47% Hmmm.
    Update for PIMIX / PONDX
    ---PIMIX, dividend of 0.05550 per share, declared on 09/30/2014
    ---PONDX, dividend of 0.05266 per share, declared on 9/30/2014
    Yeah, but what is the ex-dividend date?
    When was the NAV lowered as a result of the income coming out of the fund?
    "Declared"?
    Typically there is a Date of Record, An Ex-Dividend Date/Re-investment date, and a Payable Date.
    rjb112 in Fund Discussions
  • Doubleline CEFs - DSL vs. DBL
    if the fixed income fund's objective is current income -- then you pretty much covered ALL fixed income funds. trust me i know... i read (if not write) these for a living. for the equity fund, an investment objective would be capital appreciation. just like large cap equity could be anything in the world, so could be unconstrained bond funds or any other fixed income vehicles. DBL is a mortgage fund -- that's doubleline's primary expertise. its discount is less than that of DSL because.... wait for it... it IPO'd earlier -- in the go-go pre-2013 fed taper tantrum. so it had physically more time to develop better pricing. this is very similar to PDI (an ivascyn mortgage fund) vs PCI. the latter is more diversified (currently also with ivascyn) and IPO'd AFTER PDI, i.e. less time to develop decent pricing.
    for full disclosure, i own a decent chunk of PDI, smaller one of DSL, and a tiny bit (picked up in the latest swoon) of PCI.
    The only funds that should be similar to identical are those that not only managed by the same PMs, but have identical names, such as Pimco Income, Pimco Income I, Pimco Income II, etc.
    Hope this clears your confusion.
    fundalarm fundalarm in Fund Discussions
  • A Poor End To A Bad Month
    Absolutely agree.
    Again, think only way out of current malaise is 3Q earnings.
    Here's look back at SPY and AGG.
    SPY not as poor as Russell, still, below 10 day and headed below 50 day moving averages. But, still up more than 8% YTD.
    image
    More recently, AGG trending in right direction. But honestly neither index is offerring much comfort these days. Comfort...what's that?!
    image
    Charles Charles in Fund Discussions
  • PTTRX closed flat, PIMIX/PONDX closed -.47% Hmmm.
    Update for PIMIX / PONDX
    ---PIMIX, dividend of 0.05550 per share, declared on 09/30/2014
    ---PONDX, dividend of 0.05266 per share, declared on 9/30/2014
    catch22 catch22 in Fund Discussions
  • A Poor End To A Bad Month
    FYI: With the month of September and the third quarter now in the books, below is a look at the performance of various asset classes using key ETFs traded on US exchanges. It was a rough month for stocks, especially for smallcaps. The Russell 2,000 (IWM) finished the month down 6.19% and the quarter down 7.96%.
    Regards,
    Ted
    http://www.bespokeinvest.com/thinkbig/2014/9/30/a-poor-end-to-a-bad-month.html?printerFriendly=true
    Ted Ted in Fund Discussions