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article from Deysher

ET91
in Fund Discussions
manager of pinnacle value PVFIX about funds with high cash levels. My guess is that these funds will suffer for a while before being vindicated. This is just a guess (I don't know anything). I own the following funds from the article: FPACX, PVFIX, and FPIVX. I recently read a Q&A with Alice Schroeder (who wrote book about Buffett) and she mentions how Hussman has stuck to his guns. We shall see. The Market Can Remain Irrational Longer Than You Can Remain Solvent (I guess this is related to shorting maybe). Other funds mentioned in article with high cash stake: ARIVX (asto river), ICMAX (intrepid), COBYX (Cook & Bynum), LLSCX (longleaf), IVWIX (IVA), WPVLX (Weitz), YACKX (Yacktman), and SGOVX (first eagle).

http://www.pinnaclevaluefund.com/reports/AAII Journal Cash Dilemma May 2014.pdf

Comments

  • ET91
    also from the Alice Q&A she mentions that in 2004 Buffett knew about a housing bubble. We know how long it took for that bubble to burst. You can get a link to that Q&A from latest article by Vitaly Katsnelson if you are interested. I am NOT bearish but agree with the above MF managers that things are NOT cheap.
  • catch22catch22
    If some of that "cash" is TIPs or other Treasury issues; there wouldn't be much to cry about at this time; as this area would be supporting returns of these funds so far this year.
  • ET91
    not many people thought bond yields would go lower. although they have in the past when fed ended first and 2nd QE. I loaded up on bonds when 10 year briefly touched 3% last year (I think it was end of last year). no one said that value investing is easy.
  • rjb112
    ET91 said:

    also from the Alice Q&A she mentions that in 2004 Buffett knew about a housing bubble. You can get a link to that Q&A from latest article by Vitaly Katsnelson if you are interested.

    ++++
    Do you mind providing a link to the Vitaly Katsnelson article.......or to the
    Q&A with Alice Schroeder?

    thanks
  • ET91
    Hi rjb112, here are the two links.

    http://www.institutionalinvestor.com/blogarticle/3343613/asset-management-equities/the-true-value-of-macro-forecasting-for-value-investors.html#.U4nLEpVOXcs

    and

    http://www.reddit.com/user/aliceschroeder
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