Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

In this Discussion

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.

    Support MFO

  • Donate through PayPal

Value Funds (Global, Intl, US) that Use Options and Aren't Shy About Holding Cash?

Names I can think of:
-FPA Crescent
-Polaris Global Value (though tends to be fully invested)
-Dodge & Cox (though tends to be fully invested)
-T. Rowe Price Cap Appreciation

Others ?


  • Any reason you want them to be using options? Cash is easy to screen for. Some that probably use options Leuthold Core and Global, LS Opportunity, Wells Fargo Absolute Return, Franklin Mutual Quest, Global Discovery or Shares, Invenomic.
  • @LewisBraham -- reasonable downside protection. I know PGVFX has option (no pun intended) to use, but rarely does. Same with D&C (although they've used recently in Global Stock, Global Bond, Balanced).
  • It might be more useful to see which funds have held up better during previous downturns and their overall downside capture ratios, bear market ranks, betas and standard deviations. Options can be used in a lot of ways, not always for downside protection.
  • Hi @Shostakovich. I moved some money to an options/equity hedge fund earlier this year, JHQAX. I don't think it fits the cash holding requirement you mentioned but it's strategy makes it much less volatile than a straight equity fund, FWIW.

    I first learned of the fund here, I believe from one of Charles Bolin's articles for alternative defensive strategies.
  • Today’s Barron’s has an article on international value funds: Kopernik, Oakmark, and the Polaris SCV fund. I was able to read the article using incognito on Chrome. « These 3 International Funds Will Shine in a Global Recovery. » The Kopernik International fund, KGIIX, holds about 30% in cash. Otherwise, this is not responsive to the OP who asked about options.
  • PGVFX was one of the first funds I ever bought; I still hold it today. I'm curious as to whether the fund can survive when / if Mr. Horn retires.
Sign In or Register to comment.