https://www.sec.gov/ix?doc=/Archives/edgar/data/806636/000119312523270110/d575530d497.htm
SUPPLEMENT DATED NOVEMBER 3, 2023
TO PROSPECTUS DATED MAY 1, 2023
Pages 9 and 13 of the Prospectus and page 1 of both Longleaf Partners International Fund’s and Longleaf Partners Global Fund’s Summary Prospectus should be updated to reflect that the International Fund’s and Global Fund’s expense caps have been reduced from 1.15% to 1.05%. The fee table on page 22 of the Prospectus should be updated to reflect that the fee caps on the International Fund and the Global Fund have been reduced from 1.15% to 1.05% effective November 1, 2023 through at least April 30, 2025.

(nods) It is a worry.
As the climate destabilizes, by definition heretofore extreme events become more common. I live near Lock and Dam 15 on the Mississippi River where this spring saw the second-highest floor peak in recorded history and this fall has seen a dramatic drop that threatens commercial navigation of the river. Chip got pictures of me walking the riverbed beside the (misnamed) seawall in Davenport. The dry ground I stood on should have been 8' underwater and was near to 12' below the level of the spring flood.
The main channel here has to be at least 15' deep to allow continuous barge traffic - raw materials go north, the harvest flows south - which is mostly manageable down to St. Louis where the lock and dam system ends. From their south, it's 24/7 dredging and praying as commerce gets choked down and seawater begins to infiltrate.
The international science group Science X described the river this week observes"from the Great Lakes in the north to Louisiana in the south, the majestic Mississippi is a shadow of its former self."

Curious development with regard to new issue CDs available at Fidelity today. I’m setting up another 5-year CD ladder in our taxable account so we’ll have cash available to pay property taxes near the end of each year. Yesterday, there were a bunch of noncallable 2-year CDs available paying about 5.4%. They all disappeared overnight, and I could find only one noncallable 2-year CD paying 5.3%. I ended up buying a 21-month CD yielding 5.4%, but don’t understand why all the 2-years disappeared overnight.

And either spooky or briskly autumnal, depending on your perspective.
Devesh and David Sherman had a sort of eat-and-greet in October. One thread of their discussion is whether stocks are worth owning just now. That seems to build on Howard Marks' "sea change" article. We shared David's thoughts, bits and pieces of Marks' article and then I tried to follow up by looking at the effects of stocks on your portfolio.
The traditional asymmetry would say: returns up, volatility way up, and so risk-adjusted returns down. That's certainly true in the very long run, say 1926-2008. Since 2008, in a period I dubbed The Great Distortion, that relationship dissolved. Stocks boosted both raw returns and risk-adjusted returns as the Fed's action eviscerated cash, punished caution and rewarded speculation. But if you begin factoring in the years beyond The Great Distortion, the 20 year record is the target in my essay, suddenly (a) more risks = falling risk adjusted returns and (b) high-yield bonds start working as a risk-reduced equity substitute. Not sure that "bonds for the long run" is the mantra of the future, but I wanted to share the perspective and a bit of data.
Did a quick study of First Foundation Total Return, mostly at the board's behest. The record is unambiguous but I'm still not 100% sure of why. The change from its performance as Highland TR to its new incarnation is pretty striking. And the managers are pretty ... hmm, restrained in the frequency and bread of their written communication with shareholders?
Lynn did a great piece on short-term momentum and The Shadow did great work on tracking down the reopenings of solid funds, among other bits o' industry intelligence.
I'm intriguing by the impending GMO US Quality ETF, which might be interesting for those of us who'd have to choose between picking up something nice for the holidays or making the $500,000,000 minimum for GMO's lowest cost shares.
David

@stillers : "
I've netted anywhere from a % or 2 to upwards of 4%-5% extra proceeds over the years. For example, one BUY I still have the detail on shows I paid $47,739 (priced at 92.931) for a $50,000 CD for an effective Discount of 4.52%. Yeah, after all of the funds slushed through over the CD's life, that was worth my time and effort! "
First question , how long did you have to hold this CD in order to collect the $50K ?
Holding period would have some bearing on how good of a deal it was.
Wouldn't the brokerage take advantage on this instead of passing it down to it's customers ?
Thanks for your time, much appreciated.

My opinion of brokerage education about CD investing is not that good. When I have engaged in communication with brokerage experts on CDs, they fail to do a good job comparing the differences between brokerage CDs and bank CDs, fail to do a good job of explaining ongoing value fluctuations of brokerage CDs that are reflected at the end of each trading day, fail to explain termination fee information for brokerage CDs, fail to address liquidity concerns for brokerage CDs in taxable accounts vs tax deferred accounts, fail to discuss ways of measuring the financial health of banks offering CDs on the brokerage platform, fail to discuss callable vs. non-callable CDs, etc. etc.
These threads about CDs, started by posters with limited knowledge about brokerage CDs, can be very complicated, especially when the OP provides minimal information about the details of their personal financial situation and investing objectives.

Less than a 1%.

So how much ,% wise, did your portfolio rise today ? I haven't checked mine , but headed that way. Interested in what Mr. Market does Friday.

...Indeed. Snap-back? People (or COMPUTERS?!!!) taking short-term profits? And how much of Thursday's action was short-covering?
Ok, I'll gloat a bit. Surely, others did better. But my stuff was up +1.73% just today.

@stillers : "
I've netted anywhere from a % or 2 to upwards of 4%-5% extra proceeds over the years. For example, one BUY I still have the detail on shows I paid $47,739 (priced at 92.931) for a $50,000 CD for an effective Discount of 4.52%. Yeah, after all of the funds slushed through over the CD's life, that was worth my time and effort! "
First question , how long did you have to hold this CD in order to collect the $50K ?
Holding period would have some bearing on how good of a deal it was.
Wouldn't the brokerage take advantage on this instead of passing it down to it's customers ?
Thanks for your time, much appreciated.

I'm always late to the party. I put in a limit order to buy a significant amount of CNQ, Canadian Natural Resources Limited, on Wednesday. It didn't take. Up 5% today. I bit the bullet and bought just a few shares towards the end of the day to satisfy my urge to own. I'll keep my initial limit order active in case it wants to adjust again.

Wow, CNQ up +1.31% more, after-hours.
M* X-Ray shows me to be 17.5% in energy. But a big bunch of that is in the fund PRNEX. My single-stock choices include a pipeline-midstream behemoth and a manufacturer of drilling pipes. So, E & P is all in the fund.
Today was one of those rare days that serves as a warning not to try to jump in and out of the market. If you missed today, it'll take a bit of time to make up the difference. And my dividend payers bring a smile, along the way, also.
Waiting for TS to fall before adding a bit more.

No single location for 12 Fed Bank press/media info. You would have to go to EACH Fed Bank site and look under Press/Media for schedules. For example, here is for NY Fed Prez,
https://www.newyorkfed.org/press#public-engagements
To go to 12 Fed Bank sites, use https://www.federalreserve.gov/aboutthefed/federal-reserve-system.htm
Note that the US Fed system is unusually complicated. Federal Reserve Board is appointed by the President with the consent of Congress. But the 12 Fed Banks are really private institutions "under federal supervision". Each Fed Bank has its own Prez, Board, staff, website, etc. FOMC is a public-private committee with up to 7 Fed Governors, NY Fed Prez (permanent), 4 rotating Fed Prez. That is why the Federal Reserve site has info ONLY on Fed Chair, Vice-Chair, Governors, and NO DETAILED INFO on Fed Banks.

I’ve been laddering CDs to minimize the risk of selling before maturity. So I’ve got CDs maturing about every 3 months on the short end and 6-12 months on the long end. When I first started buying CDs last winter, I didn’t realize the distinction between callable and noncallable issues. I bought a few callable CDs on the long end because of their higher yields, but none have been called in yet. All of my more recent purchases have been noncallable, but I would consider buying callable CDs with shorter terms on the assumption that they are unlikely to be called.
I’ve got a fair amount of cash in Fidelity money markets but their yields could drop very quickly if interest rates start falling. I’ve also been laddering Treasuries but their yields are generally lowering than CDs and they are more troublesome to buy (although easier to sell before maturity.)

Selling a bit of an infrastructure fund heavy in utilities - rebuilding depleted cash. Utilities have been sucking air lately. Nice rebound in recent days on lower rates. VPU (as a gage) is up 2.17% 2.36% late in the day.

@stillers : Thanks for the info. Would you mind commenting more on what would be a good buy on the secondary market & how to figure out what one's profit would be. Thanks for your time, Derf

Sure, but keep in mind, there have been very few good opportunities, if any, in the (Fido, at least) Secondary Issues market over the past several months. We'll find out whassup with the current offerings via this exercise! A coupla rungs drop off my ladder this month so let's get it on!
NOTE: There is a LOT to know about all this. I'll try to provide the whole enchilada but will surely miss some stuff that perhaps can be resolved via questions.
NOTE: Fido has a very worthy Fixed Income Desk filled with some of the sharpest minds I've ever encountered on all things Fixed Income. Suggest using them as your ultimate source. Depending on workload, they may very well walk you through the scoping. But better to have done some work yourself in advance, allowing you to compare what you developed as a possible BUY to what they KNOW are the best offerings on the table! And no, I'm not providing their number here - readily available by calling main Fido number.
NOTE: BUYing on the Secondary Issues market is a wee bit different than New Issues as respect to your funds flows. You may BUY a 3.00% CP, 3-yr CD for a whopping discount and earn IN TOTAL more than a New Issue 5.15%. The difference? You will be able to internally book a potentially BIG time interest gain at time of BUY, but you'll have 3.00% interest payments over the life of the CD versus the 5.15%. On the flip side, you'll have the Discount in your pocket at the time of the BUY to invest wisely (sic) elsewhere.
Alright, off we go...
First, you need to have a Fido a/c to even view the Secondary Issues offerings.
(Same CDs are usually available on both Fido and VG. No experience with other platforms.)
On top ribbon, go to News & Research
Then Fixed Income, Bonds & CDs
Then CDs & Ladders
Then Secondary CDs (Link is under the current rates)
Enter your Maturity Dates (I'll use 11/2023 to 12/2026, 3-yr, for this exercise)
Note that the highest rate on New Issue 3-yr Call Protected CDs is currently 5.15%
So that will guide me to look for something better than 5.15%
Enter at least 5.15% as the minimum Ask Yield to Worst
At the Show More Criteria link
Enter a Price & Coupon max of something near but under 100 (I'm using 99.908)
NOTE: Anything above this ain't worth looking at - selling at a Premium!
Select Yes for Call Protection
Enter other desired variables there if any
Press See #### CUSIPS
You are now In The Game!
Sort data in descending order by Ask column, Price and/or Yield to Worst
Note: Anything priced at/above 99 might be a worthy BUY but that's a general line of demarcation (so-to-speak) to gauge the overall opportunities. I'm always trying to score under say 99 and change, but of course that generally means you are living with a pretty low Coupon CD for its life.
NOTE: Some/many following along are likely getting a wee bit confused by now but it all shakes out in the end!
And to address one other part of the question here...
I'm always shooting for something that's worth my time and effort to qualify as a "good buy."
YMMV.
I've netted anywhere from a % or 2 to upwards of 4%-5% extra proceeds over the years. For example, one BUY I still have the detail on shows I paid $47,739 (priced at 92.931) for a $50,000 CD for an effective Discount of 4.52%. Yeah, after all of the funds slushed through over the CD's life, that was worth my time and effort!
Gonna post this much now so this stuff ain't lost.
Will follow-up with another post picking up from here.

”That's not the mechanics of a brokerage CD - you cannot just withdraw your money. If you want out of a brokerage CD before maturity, you must list it for sale on the "Secondary Issues" market.”
Thanks @Stillers / One of your better posts.
As a cash resistant investor, I continue to try and get my head around this exotic land of constrained cash. ISTM that something having a fixed rate, a fixed duration and able to be sold only on the secondary market constitutes a bond. What am I missing here?
Anybody know how today’s sharp dip in rates across the board is affecting CDs? I’d imagine a bit of a crunch to get in the door before rates drop further. Are 1 & 2 year CD’s above 5% still available?

Reporters tried to pin Powell but he didn't play. Said that 1 more hike is still possible. Meeting by meeting decision.
Get well!

@Jan: "I saw a 5.8% yield on a 10 year CD through my Fidelity brokerage account.
The bank can call the rate and I haven’t checked the penalty for early withdrawal but I imagine it would be harsh..."
Unlike CDs issued directly by banks to customers, there is not a "penalty (per se) for early withdrawal" of brokerage CDs. That's not the mechanics of a brokerage CD - you cannot just withdraw your money.
If you want out of a brokerage CD before maturity, you must list it for sale on the "Secondary Issues" market.
There are currently hundreds/thousands (?) of Fido brokerage CDs that owners no longer want to own. Virtually none of them are selling now, and haven't been selling for many months. Owners are generally asking far too much for their unwanted CDs and investors are far more apt to buy "New Issues."
Aside: FWIW, I've made a bunch of easy money over the years playing in the "Secondary Issues" market, but have been unable to score a worthy BUY there all of 2023.
Bottom Line: If you BUY a brokerage CD, be reasonably certain (read "absolutely certain") that you WILL hold it to maturity. Your "penalty" for wanting out of it is effectively the inability to sell it on the "Secondary Issues" market and you being stuck with it until maturity. In a best case scenario, you might be lucky enough in the current market to SELL it for a substantial discount (loss).
And FWIW, "callable" is a proverbial four-letter word to me - I have/would NEVER buy or own one.

Just want to make it clear, JHQAX doesn't short stocks. I've actually tried to find a balanced or allocation fund that returns as well, with lower or the same volatility.
HFSAX has returned nearly the same amount as JHQAX (6.54% vs 6.71% annualized) over the latter's lifetime with significantly lower volatility (6.10% vs 7.44% std dev) resulting in better risk adjusted returns (Sharpe ratio, Sortino ratio). Per PortfolioVisualizer.
Very high ER, and a very high (over 500%) turnover ratio. Neither is surprising for a tactical allocation fund.

Tactical allocation funds had an average expense ratio of 1.39% (they are very expensive) and an average turnover of 289% (trading costs are high and tax efficiency is low).

https://www.evidenceinvestor.com/tactical-allocation-vs-static-indexing-which-one-wins
(Swedroe referencing a study of tactical allocation funds between Jan 1994 and Oct 2016.)