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OSTIX

sma3
in Fund Discussions
I have used OSTIX for a portion of my fixed income.

Does anyone know why despite two tumultuous days last week, the NAV of OSTIX was totally unchanged on Thursday and Friday. It seems very odd that a fund of this size would not change a penny.

there is a lot of talk about liquidity risk in junk bonds and I wonder how often they can get accurate prices ( much less sell) some of their holdings. Could it be that they used the last best price for many of their lesser traded bonds?

Any ideas?

Comments

  • AndyJ
    edited September 2016
    A couple that don't involve liquidity per se:

    * Longer duration is what got whacked in fixed income, and OSTIX is short duration.

    * The carnage in the FI cef's I own/follow (which generally live right around the boundary of investment grade and junk with short to moderate duration) was all in the price, not the nav. Most of the nav's were flat-ish: some slightly down, some flat, some even had tiny gains. Oef's of course trade on nav, so I'd expect similarly positioned oef's to have also come in flat-ish on nav/price.

    P.S. Looks like short taxable junk oef's have been little affected, as a category. ASHAX, MDHAX, and OSTIX have TR losses of 0.1% or less for the last week, whereas taxable junk oef's with intermediate duration report larger losses.
  • BobCBobC
    My experience with OSTIX is that it rarely disappoints. It may never be at the top in great years for fixed-income. But Carl Kaufman, Simon Lee and their team have done an outstanding job of doing what the fund is supposed to do, year after year. They are extremely careful and picky about what the fund owns, and are comfortable with a rather big cash position. OSTIX is a core hold in many client accounts, and we have used it pretty much since it first started, based on the manager's history.
  • Sven
    I concur with BobC assessment on OSTIX. I too have invested with them since its inception.
  • VintageFreakVintageFreak
    M* calls OSTVX flawed. I thought OSTIX sleeve was part of OSTVX. So I don't understand why OSTIX does not get an shtick
  • AndyJ
    No followup from the OP?
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