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SEQUX-keep it or sell it

Is it time to drop or keep SEQUX with the big drop of VRX?

Comments

  • In my books, it is really scary when any fund (however good or any superstar fund manager) holds 20% of any company in the mutual fund. Valeant is 20% of SEQUX.

    I learnt my lesson last time with Fairholme with Berkowitz's bets on Sears, AIG and Bank of America.

    There are other funds out there in their space which can produce the same results with less portfolio risk.

    I would drop it , but thats my opinion. Good luck!
  • Hi Carefree. If you didn't own SEQUX, would you buy it to fill that space? I always thought I would like to buy that fund if it ever opened up again, but I now feel like it is not the same fund it was 5-10 years ago. Trust in management and stewardship, a term borrowed from M* is not there for me, even though M* still ranks the fund gold for that aspect.

    What's your gut say? For me. the best fund in the world is now in question. There are plenty of good funds to choose from.
  • edited March 2016
    Looks like the fund went down by 15% today. At first, I thought they had sold Valeant but the quote from Morningstar was 3/14. When I saw the quote was old, I searched and found today's.
  • Didn't SEQUX go down 7.69% today, 3/15?
  • Yes it did! I just looked again. Sorry.
  • VRX dropped 51% today.
  • How ever did I miss VRX? I've lost my touch!
  • At the risk of committing blasphemy, is anyone thinking of reducing their investment in any of the more aggressive PRIMECAP funds (i.e. poagx, pogrx) or any other fund that is H/C and/or Tech heavy?

    I only ask because it seems like H/C (incl. Biotech) and to a lesser extent, Tech is in for a tough ride in the foreseeable future. The rhetoric from our political candidates is ramping up.

    Just a random thought.


    Matt
  • Sell. The management of this "conservative" fund blew it. Move on.
  • @MFO Members: From 2012-YTD the S&P 500 Index has outperformed SEQEX. I agree with BobC, its time to move on.
    Regards,
    Ted
  • AND...now Morningstar has the fund under review. Too little too late!
  • M* shows 46% in its top 5 holdings. Ya gets what ya pays for.
  • "Ya gets what ya pays for."

    Sometimes. Maybe.
  • @districtwanderer: Greetings! I added a couple additional thoughts on the matter of little and late reviews in a new thread, for what interest that holds. David
  • Old_Joe said:

    How ever did I miss VRX? I've lost my touch!

    LOL

  • edited March 2016
    And then there is the matter of debt paydown (probably NOT), which really unsettled creditors after what must have seemed like a freakshow of a conference call for them:
    http://www.bloomberg.com/news/articles/2016-03-15/valeant-shatters-calm-among-lenders-as-debt-casts-bigger-shadow
    Creditors are starting to lose faith that Chief Executive Officer Michael Pearson will be able to execute on his promise of rapidly cutting Valeant’s debt load. A delay in filing its annual report with regulators is also complicating the company’s standing in debt markets. Failing to file its so-called 10-K before Wednesday will trigger a technical default under its credit agreement, restricting it from using its credit line, the company said.
    All you stockholders, remember, if it all blows up, we bondholders will be in the line ahead of you.:)

    Artisan High Income Fund (ARTFX)
    Top 10 Holdings (% of total portfolio as of 29 February 2016)
    USI Inc 5.4
    VEREIT Inc 5.1
    Valeant Pharmaceuticals Intl 4.2
    First Data Corp 3.8
    Opal Acquisition Inc 3.3
    Renaissance Learning Inc 3.2
    York Risk Services Holding Corp 3.0
    Gardner Denver Inc 2.9
    Altice SA 2.8
    Infinity Acquisition LLC 2.8
    Total 36.5%

    Not sure/can't imagine what Bryan Krug was thinking, when he was amassing this large position in Valeant debt.

    update: apparently, Valeant didn't meet the Wed. deadline re. 10-K filing:
    http://www.bloomberg.com/news/articles/2016-03-17/valeant-declines-on-report-that-drugmaker-faces-lender-pressure
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