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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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  • Concentrated, high quality, small cap growth strategy. 400 bps lead over the Russell 2000 since the beginning of the 21st century. The Big Dog had a stint at Jundt back in the '90s (who now remembers the glory days of Jundt Growth Fund, which was magic until it wasn't?) and graduated from St. Thomas, my son's alma mater. Most of the rest of his team have dumb ol' Ivy League degrees.
  • edited March 17
    I remember Jundt, one of the few mutual funds to do any hedging way back when. Still, it is instructive to look at the GIPS report for private accounts here: Recently, they've had only ten accounts and a small amount of assets, $334 million. Sometimes, that private institutional account record doesn't necessarily translate into success in a public mutual fund that requires daily liquidity and has thousands of small investor accounts buying and selling the fund every day. It also seems this is a bit of a feast or famine strategy where it either has a tremendous year or a pretty poor one.
  • @lewisbraham is this kind of report available for every mutual fund? Specially how many accounts are being managed in a fund?
  • edited March 17
    @Devo. The GIPS report is in the link I just provided, here again:
    GIPS is the performance reporting done for private institutional accounts that have been independently audited, often so the manager can disseminate that performance as a marketing tool to potential clients. It's not done for public mutual funds, which have different reporting standards. There are some problems with GIPS in that not every institutional account is always identical portfolio-wise, leading to different results between accounts so there is a "standard deviation" of accounts performance. Here that deviation though seems minimal, so it's less of a concern.
  • Thank you. Is there any report which shows how many accounts a public mutual fund has from any other data source? I am assuming there isn’t but would love to see if data exists.
  • edited March 17
    That would be tricky for a public mutual fund. Also, I imagine that the, say, thousands of accounts at Schwab might count as one "omnibus account." I'm not sure how they calculate that. But I've seen a number of times funds launched in the same style as private accounts where in the private accounts the performance was terrific, but the public fund's performance is lackluster. Everything is much more controlled and slow moving asset and flow wise in private accounts. Clients might only review their accounts once a quarter to withdraw or add money to the account, and the asset bases in aggregate are usually small. This private account data is especially misleading I think with small- and micro-cap strategy conversions from private to public, as the securities are illiquid and much easier to trade and hold onto in a private account. And one successful micro-cap stock investment can lead to huge performance in a private account where in a much larger mutual funds that performance would be diluted by holding many more stocks. A successful large-cap private account strategy that goes public I would have more faith in.
  • Thank you. Good education.
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