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FEHAX or FEBAX

edited June 2012 in Fund Discussions
Which is a better fund FEHAX or FEBAX in this market?

Comments

  • Howdy,
    1. Do you already have other bond funds that are similar to these in mix or sectors?
    2. FEBAX is just newborn, May, 2012. I personally would need more time to find how management steers through the current debt markets which contain some big waves here and there.
    3. Do you have access to other bond funds that do not carry a 4.5% front load? Such a load would find similar HY funds at a break even point at this point of the year; in other words, the load would have killed all HY bond gains YTD, and one would just now start to make money if the HY sector continues to move forward at its current annual pace.
    Regards,
    Catch
  • The only bond fund I own is DBLTX. Both of these funds are no load through Schwab.
  • edited June 2012
    Hi Carefree,

    Just my 2 cents worth, but both of the First Eagle funds are too new for me.
    Past this, I would use the fund research tool at Schwab. I could not find a proper sorting tool for a "total bond fund", although there is a multi-sector sort tool. Some total type bond funds will be found in a Schwab search list of intermediate term bond funds. The search tool does provide good results for the HY bond area.

    DBLTX gives you exposure to the mortgage securities bond area and Mr. Gundlach will take care of that area properly.

    We have a few direct focused bond funds towards TIPS, mortgage securities, emerging markets and high yield; but with the rock n' roll of all markets today, we will leave the bond choices to the managers in broader sector bond funds; which is why we hold funds like: PTTRX, FTBFX, LSBDX, DPFFX, DGCIX, FSICX, etc.

    I feel your holding of DBLTX, a total/multi-sector bond fund and a HY bond fund offer a decent bond mix today, depending upon the amount of monies devoted to each area.

    Take care,
    Catch
  • Like others, I prefer funds that have flexibility in their investment approach. So, in addition to TGBAX, GSDIX, GIMDX (our mainstays in foreign bonds), we like OSTIX, LSBDX, BSIIX, and BJBGX. If you own Templeton, Goldman, Osterweis, Loomis, and BlackRock, you have pretty much covered the bond arena. If tax-free is important, I like NEARX, LTMIX, but nothing that goes out really long-term, although we have some clients who have held onto FOHFX and VOHIX. At this point we do not use a high-yield fund, since we can get some exposure there from Loomis and Osterweis. On another note, we use PAUDX as one of our go-anywhere funds, and its dividend is quite attractive. We also like TIBIX, but it fluctuates quite a bit more than PAUDX.
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