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A Three-Alarm Great Owl?

I was doing some research in the fund lists when I noticed an anomaly: Fidelity Real Estate Income (FRIFX) is listed as both a Three Alarm Fund and a Great Owl Fund.

Can someone explain how this is so? And are there any other such funds?


  • edited June 2015
    You asked: "And are there any other such funds?" I can't answer this. The following relates to FRIFX.

    This fund will remain in this status as it is the only real estate fund that I am aware of that is about 50% each in equity and bond holdings. This fund will look like crap when the equity only real estate funds are happy and will also look like a very good fund when the equity real estate sector is being a dog.
    A very smooth fund with a decent yield in this area. Do not be mislead by the rating here and at M*, or elsewhere.
    There is not any good method to qualify this fund within the Real Estate sector.
    I suspect you will not find another fund that is so badly mismatched to a category. Tis not the fault of those setting a category; but that there is not a satisfactory category for this fund.
    If you want yield/income from this area; this is a nice, slow and smooth fund.
    If real estate and related bond holdings all go to heck; this fund will eventually also suffer loses.

    Keep in mind that this fund has always been a U.S. center real estate fund. Comparing with some other r.e. funds with large exposure to non-U.S. equity real estate will be an apples and oranges event.

    Fidelity Overview here

    We continue to hold this fund at our house.

    Lastly, if one was a momentum trader in the real estate sector for etf's or active managed funds, one's profits "could" be higher with choices other than FRIFX as this chart presents.

    PETDX vs FRIFX . Move the 200 day slider at its left edge, to the left, for a longer time frame view of these two funds.

  • @catch22 Thanks for the insight on FRIFX. That's in line with other views of the fund I've come across and it may help account for the discrepancy.

    I'm still trying to get a handle on MFO's evaluation of the fund. For purposes of both Three Alarm Funds and Great Owls, its fund peer group is the same - Real Estate (i.e., U.S. Real Estate since there is a separate category for Global Real Estate funds).

    I can only surmise that this has something to do with the fact that, by definition, Great Owls use risk-adjusted returns while Three Alarmers are based on "absolute returns."
  • Precisely!

    GOs are based on risk adjusted return.

    The legacy Fund Alarm designations of Three Alarm and Honor Roll are based only on absolute return.

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