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The featured the fund in Morningstar Magazine, in an article titled "GoodHaven 2.0."
Their bottom line might be: remarkable turnaround. Distinctive portfolio. Disciplined manager. "May not have broad appeal," because it doesn't fit neatly into a box. Still, it's drawing attention.
Interesting. Morningstar Magazine (never heard of it before) is a quarterly with 75-80 pages with many M* articles, analyst reports and features; and lots of ads. Free to professionals, but unclear how much it costs otherwise (I couldn't find unless I go through all of the subscribing steps). https://www.morningstar.com/products/magazine
Not to be a tease, but it's available if you know where to look.....
I'm not sure it's mass-market / retail-investor appropriate, but I'm sure most serious MFO'ers would probably find it "interesting reading" in-between posting in the forum.
I have a subscription...Articles are great and I love the statistics and chrts in the back end of the Mag. Most material can be found throughout M*. I find tht I've read or come across many of the articles.
@sma3: I take an occasional winger on a M* undervalued stock, but the proof of the methodology is MOAT, my largest single equity holding. I note the space devoted to the index/fund in the linked M* article. Other flavors of ETF equity LCB funds have come along (BFOR, CAPE, and all manner of « quality » entries), yet MOAT is still out front besting the SPY. 2022 performance demonstrated the resilience of the method in down markets. In its bottom-quintile 2021, it still returned 24%. Members are understandably miffed at M* for various misdeeds; moat investing deserves praise.
MOAT is my largest equity fund as well, outside of passive indices. I have had it for a while but meaningfully increased it when they changed their methodology in 2016. I would recommend this fund to anyone who is looking for a value ETF. Some nuances to keep in mind is that it is more like an equal weight fund, tends a bit mid-cappy, and scores very low on momentum factor, which means that the fund sells out of winners a bit too soon. If your mantra is "let your winners ride and cut your losers," this fund's methodology can do the opposite and the funds' performance path can be frustrating at times. Given they reconstitute / rebalance every three months, I wish they would not throttle the momentum factor as much. If they correct for this shortcoming a bit more, this can be a very good fund. Also, M* sometimes picks moat companies in dying industries into the fund. But I guess I can not have a perfect fund!
FAMEX behaves similarly, and is NTF at Fidelity….longer term it outperforms it, but since 2020 GOODX has better returns (especially last 6 months or so).
Wasn’t GOODX started by some former Fairholme analysts?
EDIT: sorry, I see that information in the MFO write up!
I started reading the article in the OP and then decided to first check the fund out. Its near 50% financials (say, 40% if you back out BRK) is too much for me. (I already own a lot of BRK.) However, the fund did well in 2023 and 24 notwithstanding its zero allocation to Tech, HC, CD, and Utilities. So, if one is looking for the sector bias this fund offers, may be it is worth a look because the managers may be doing a good job with security selection.
Like @BaluBalu, there is too much overlaps in both holdings between Goodhaven fund to other funds I own. At this point there is no compelling reason to add.
Comments
https://www.morningstar.com/products/magazine
For more info, it says to go to M* Insights, but the articles there aren't by M* Magazine issues.
https://www.morningstar.com/research/blog
I'm not sure it's mass-market / retail-investor appropriate, but I'm sure most serious MFO'ers would probably find it "interesting reading" in-between posting in the forum.
https://www.nxtbook.com/nxtbooks/morningstar/magazine_2023q4/index.php#/p/Cover1
1Q 2024:
https://www.nxtbook.com/nxtbooks/morningstar/magazine_2024q1/
The Goodhaven article is interesting, although I am reluctant to invest in a fund with so much behind the scenes drama.
Since our July 2023 profile, GOODX has posted top 10 (of our 300+ peers) performance in both total return and risk-adjusted return.
Wasn’t GOODX started by some former Fairholme analysts?
EDIT: sorry, I see that information in the MFO write up!
If you're looking for a fund that is darn near 50% financial services, here's your ticket.
I just bought AMAGX for the taxable. They don't own financials. I don't seek financials for the IRA. YMMV.
@David_Snowball says: Have you added it to your portfolio?