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IBD: This TCW Mutual Fund Manager Seeks All-Weather Equities: (TGUSX)

FYI: TCW mutual fund manager Joseph Shaposhnik is looking for all-weather stocks to invest in. His approach helped in July as the rising stock market lifted his and other stock funds, though they gave back a sizable chunk near month-end on disappointing news regarding the Federal Reserve's rate cut.
Regards,
Ted
https://www.investors.com/etfs-and-funds/mutual-funds/stocks-to-invest-in-tcw-fund-manager-seeks-all-weather-equities/

M* Snapshot TGUSX:
https://www.morningstar.com/funds/xnas/tgusx/quote

Comments

  • edited August 2019
    https://www.morningstar.com/funds/xnas/tgunx/portfolio
    Seems to be just a different share class. TGUSX has ER which is -0.2% lower than TGUNX, and a tiny bit better returns so far, in 2019. Maybe that's a product of the lower ER? Entry for BOTH is $2,000.00 minimum. Curious.
  • edited November 2019
    TGUSX is institutional and TGUNX is retail, despite the same minimums. Still, a 1% ER for what appears to be a very promising fund with an 87% active share - and an MFO Great Owl - isn't too rich considering some of the competition's fees. I'm a great fan of multi-cap funds (22% of assets is in mid, small and micro caps) though NAV here has remained stagnant in the last few months.
  • @simon looks like a very interesting fund and still small in AUM. Do you know if anyone on the board has done an analysis of it? Looks like one I should further research. Thanks for posting this @Ted
  • 80 % invested in 3 areas. For now it's working .
    Derf

  • I like this. They are marching to their own drummer, benchmarks and indices be damned. Definitely one to watch - thx Ted for bringing it up.
  • edited November 2019
    I'm thinking as the market currents change so will the fund's sector orientation. TGUNX reminds me of a fund that I was invested in a few years back ... Ivy Asset Strategy, WASAX. When it was a relative small and nimble fund it was able to followed a sector rotation and positioning strategy in short order; but, as it grew in size it became more difficult for it to position and then reposition. Some say it's repositioning one day lead to the flash crash. With this, I sold the fund since it no doubt was left to modify its investment strategy.

    I have linked below a Morningstar article that covers the flash crash and WASAX in more detail.

    https://www.morningstar.com/articles/356552/our-take-on-ivy-asset-strategys-flash-crash-fallout

    Then there was Marketfield (MFLDX). While it was small it indeed was an exciting fund to be invested in before Mainstay bought it. Assets continued to grow and the fund became bloated and inefficient. Old_Skeet then sold his shares as the fund flamed out as Mainstay would not close the fund to new investors.

    Below is a link that covers MFLDX's flame out.

    https://www.barrons.com/articles/what-happend-with-alts-flame-out-mainstay-marketfield-1473949171

    Perhaps, the managers of TGUNX will govern with better wisdom than the managers of WASAX and MFLDX did.

    No doubt ... time will tell.
  • MikeW said:

    @simon looks like a very interesting fund and still small in AUM. Do you know if anyone on the board has done an analysis of it? Looks like one I should further research. Thanks for posting this @Ted

    Mike - you can check the fund's risk profile and other performance details right here on MFO.

    http://www.member.mfopremium.com/greatowls/

    Quickest way to find TGUSX is to sort by APR (highest to lowest) and it will be the third fund down. Then click on the ticker and a new page should open.
  • @Simon and @Derf thanks very much for sharing this info. Have been running screens on MFO premium and TGUSX came up with good risk/reward criteria with 3 year track record. I need to find out more about the manager of the fund. haven't seen much about him yet. Thanks for posting the link to the interview Derf.
  • Mike - Dr. Snowball mentioned in a fairly recent monthly commentary that if two or more people were interested in a particular fund he would do a write up of it. As he often contacts the firm and fund manager directly it may be a worthwhile endeavor since there is quite a bit of interest about this fund. I'll shoot him an email in the next couple of days.

    [email protected]
  • @Simon ah yes forgot about that.... excellent suggestion. I'll also email him. Another fund thats looking great.in risk adjusted terms over the last 7 years is FAMEX. David wrote up an analysis of them several.years ago. I was going to see if he could update it.
  • MikeW said:

    @Simon ah yes forgot about that.... excellent suggestion. I'll also email him. Another fund thats looking great.in risk adjusted terms0 over the last 7 years is FAMEX. David wrote up an analysis of them several.years ago. I was going to see if he could update it.

    FAMEX is a really great fund...a slightly better risk profile than my all time favorite PRDGX which I've held for years and has never disappointed. PRDGX has a much lower fee, of course. I have my IRA with T Rowe and I'm going to check if it's a NTF fund there, otherwise it's a $35 fee to buy which would probably put me off. Thanks for the mention. Both funds are Great Owls.

    If you are listening T Rowe Price - you need to catch up with the trend and eliminate your commissions on many more mutual funds!
  • @Simon It looks like you and I are interested in some of the same funds. PRDGX is one I've had on my watch list for awhile. Great fund. I'm going to direct message you.
  • It may be worth noting that concentration and low turnover characterize FAMEX and TGUSX, the latter holding 51% of AUM in its top 10 positions. AKREX has also been very successful with this strategy. 2019 is the first year since the fund opened that there will be any meaningful year-end distribution. The first two funds mentioned also appear to be tax efficient. Another mid-cap fund that shares these characteristics is DFDMX. A wag might venture the thought that the best active management is buying good stocks and holding on for ages.
  • @BenWP. Yes excellent points. Buy and hold also fits the way I try to invest. I need to do a little more digging into FAMEX. The fund held up incredibly well in the Fall selloff last year. However back in 2008 it dropped 49%. I would love to find out if they've become more defensive and changed approach following 2008.
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