Hi, been awhile since i've been here and wonder if i could get some opinion. My port is 40% equity, 60% FI. I have held OAKIX and OAKBX to fulfill diversification in providing foreign market exposure, and the positions combined comprise
less than 10% of my Taxable account. I'm disappointed in performance of both - lagging for a few years now but YTD both down double-digits. I recognize these are being hurt by the value-bias style that has been out of favor for quite a few years... Herro @ Oakmark has favored financials which of course negative interest rates are pummeling worse than the overall market. IF rates rise, theoretically financials - and in turn Oakmark funds would be expected to improve. However to exit basically 'at the bottom' in current conditions obviously invokes tax consequences. That said, how long is long enough to give these a chance; they are in the bottom 2% of Foreign Blend funds. NAV losses have mounted radically and obviously the CV market volatility is accelerating that. Similarly a recent buy into VG EM Fund VMMSX has yielded significant immediate losses but the OAK funds are more my concern right now. Longwinded lead-in to the question.. What would be pros/cons of holding vs taking the losses - what's an educated guess as to the realistic chance that the OAK funds rebound anytime in say, the next year or so.... What might be a lower risk more 'normal' international fund(s) substitute to consider? As for the EM equity side, again not a huge position but had been in the lagging AEMGX before chosing - a little too hastily to swap into VMMSX (VG) - tho Black Rock in hindsight MDDCX would've been a better choice IMO... but open to suggestions on others to study as well.
BTW, am 61 y/o, no debt, working less, PF generating in the realm of 55-65k/year in Dividend Income. PF value after today's/past week's crash, about 1.87M after recent all time high(Feb) of 2.1M. Thanks! Mike