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Checking the chart since inception ~2 years ago - it survived two dips much better than the S&P, one dip was almost (but not quite) as bad, yet overall returns over the past two years are 1% vs 20% for the S&P. That's a bit lousy, hedge fund or no, especially considering the ER.
So for those of you who hold it - or have held it - are you happy with your investment?
In fairness, it's a market neutral fund so you should expect market-like returns, up or down. In general it captures 40% of the upside and 20% of the downside. Since the strategy launched, it's captured 80-some percent of the S&P. Since the mutual fund launched in July 2013, it's captured about 25% of the returns but hasn't had a lot of volatility to work with.
I did ask Morty a similar question last week, about the fund in the recent choppiness. His answer was that it's working about as planned. It can capture as much as 50% of a sudden downdraft but the volatility-driven options should allow a fairly quick recovery. He's asked if I'd like to speak with the managers later this week, but I'm only the road and a bit unsure of my schedule.
Thanks, David. I'm fine with it capturing some of the downdraft, I just wish it caught more of the updraft too! Hopefully the current volatility will let the fund shine a bit.
Mostly trying to decide whether I should put in more cash or liquidate. It's an interesting idea for a fund.
I own this fund. It if continues to perform like it has I expect to hold it. What we need right now is for some more assets in the fund. I fear the fund will shut, because fund companies will only keep a fund running so long unless assets rise to a level the fund at least pays for itself. Look what happened recently to RNBWX.
Comments
In fairness, it's a market neutral fund so you should expect market-like returns, up or down. In general it captures 40% of the upside and 20% of the downside. Since the strategy launched, it's captured 80-some percent of the S&P. Since the mutual fund launched in July 2013, it's captured about 25% of the returns but hasn't had a lot of volatility to work with.
I did ask Morty a similar question last week, about the fund in the recent choppiness. His answer was that it's working about as planned. It can capture as much as 50% of a sudden downdraft but the volatility-driven options should allow a fairly quick recovery. He's asked if I'd like to speak with the managers later this week, but I'm only the road and a bit unsure of my schedule.
More soon.
David
Mostly trying to decide whether I should put in more cash or liquidate. It's an interesting idea for a fund.