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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.

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Buy-Hold-Sell Opinions


  • edited February 2019
    @Bobpa. Not long ago you came to the board seeking thoughts on equity income funds. A number of MFO members responded to you including myself. You failed to thank us for out thoughts in response to what you had asked. With this ... I have no comment for you on this post other than what I have made above.
  • Thank you for holding me accountable. I do appreciate the responses. It may be better if I do not participate or initiate discussions.
  • Charges of ingratitude aside, you could elaborate and pose a question or an answer or an observation; that would be helpful. And there is a search function, which if you employ you will see a fair number of postings about HOBEX details and behaviors.
  • Just different personalities @Bobpa. Personally, my recommendations don't need validation so that wouldn't bother me (I have a smaller ego maybe?). Keep participating. Everyone gleans something from these types of posts and subsequent replies.
  • edited February 2019
    HOBEX - New fund in 2016, so probably not a lot on it yet. Appears they’re trying to generate decent income while hedging against rising rates. That’s a tough act to pull off. The 1.84% ER is high but not unusual for this type of fund. Likely the strategies employed are expensive. The 138% turnover rate doesn’t help matters, but, unfortunately, that’s also typical of many alternative investment strategies. Here’s how Lipper describes the fund:

    “The Fund seeks to provide current income, with a secondary objective of capital preservation in a rising interest rate environment. It will allocate its portfolio in fixed income securities through the purchase of closed end investment companies and exchange-traded funds that invest in income producing securities.”

    I like to look at MaxFunds along with Lipper and M* for insights. MaxFunds is sometimes wrong - but “never in doubt” (willing to go out on a limb with their projections). Their rating for HOBEX is +2 out of 100.

    Not sure how you came by this fund - possibly thru some employer’s plan. My take is that the problem with the fund probably relates as much to the high-wire act they are trying to execute and the high fees and trading costs as with management. Along a similar vein, Price has a new hedged income offering, TMSRX, also with lackluster results, but having a lower 1.37% ER (and somewhat lower turnover rate).

  • edited February 2019
    @Hank this fund was discussed here over the summer and Dennis profiled it in the July(?) monthly commentary. I held the fund all of 2 or 3 days when I realized they held MLPs. Good fund and a good manager with an excellent track record But I stay as far away as possible from any fund that holds MLPs regardless of how small or large that holding may be. But that is just me. It had a pretty bad drawdown the last quarter, at least by my standards.
  • edited February 2019
    Thank you @Junkster. Since it was discussed here (which I didn’t realize) might explain how @Bobpa happened to hear about / or buy it.

    Anytime I see 138% turnover / 1.84% ER have to wonder what in the world are they trying to do ...
    But I can understand to a degree people seeking out alternatives for various reasons. Unfortunately, have yet to see one that’s worth its salt.
  • edited February 2019
    Yes, I remember when Kinder Morgan MLP shareholders received significant income in taxable and non-taxable accounts when the MLPs were converted into Kinder Morgan stock.

    Here is a reminder of that incident:

    Here is a link for Cramer on the same issue:

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