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Dear MJG,
I am really grateful for this discussion. However, the question which I asked still remains:
It is true that an AVERAGE active managed fund is doomed to loose the competition to an AVERAGE index fund or ETF, especially after taxes.
But…
Hi MJG,
Thanks for the very informative report. I have some questions to ask:
1) Usually the comparisons are made on a pre-tax basis, which is OK for IRA or 401k accounts. However, on the after-tax basis, which is very important for many people, t…
PDI is up today. A new closed end fund from PIMCO was just launched, PCI, see
http://www.sec.gov/Archives/edgar/data/1558629/000119312512506897/d451805dn2a.htm
http://www.bloomberg.com/news/2013-01-29/pimco-to-doubleline-leveraging-as-yields-retre…
At inception, this fund was sold at a significant premium, then this premium disappeared, and now it is trading at a very small discount. My guess is that the Great Rotation plays some role there. I checked several PIMCO closed end funds, many of th…
This is a very interesting question; I would be happy to know the answer. I am new to bond investment, and PDI is my first closed end fund. Up to now, it was fantastic. Its 50% leverage does not fully explain its success. Its NAV continues to grow, …
Dear David,
Thank you so much for your incredibly useful work and comments.
Concerning FPIVX, the main question is not why Eric left. The question is that the fund was supposed to have two managers covering different areas of the world, so will it…
Reply to @Mark:
As mentioned below by Hiyield007, in December 2012 PIMIX aka PONDX held 22% in non-U.S. Developed bonds and 19% in emerging markets bonds.
Thanks for the answer, I understand. PDI is the first closed end fund for me; let us hope that its exit doors will not be closed when I decide to leave...
Dear Hiyield007,
Thanks a lot for attracting my attention to PIMIX lsome time ago; I am using it quite heavily now. By the way, is there any reason why you are 95% in PIMIX rather than in PDI?
Andrei
Interestingly, during the last 6 months FNMIX and MAINX have similar results, but MAINX does it with smaller volatility. So maybe indeed this is the growing pains.
Even more interestingly, during the same time interval PIMIX beats both of these fun…
What would be the main advantage in investing in MAINX as compared e.g. in the emerging markets bond funds. For example, FNMIX outperformed MAINX since inception of MAINX.
Thanks a lot. The data from 30 Sept. 2012 can be found on Morningstar website, they give 42 holdings, the top ones exactly coincide with the ones you give. So these data are 3.5 months old. During that time they could change the strategy, after the …
Worrisome news concerning ARTHX. This is the fund mentioned in the latest commentaries http://www.mutualfundobserver.com/2012/12/artisan-global-equity-fund-arthx-december-2012/.
The language used at the Artisan website is quite interesting: "Barry…
Most interesting! What is the source of the data? I did not find it at PIMCO website, the latest there was from Sept. 2012; probably I did not look hard enough...
From the second table it seems that PAUDX is short US stocks, but long International …
Reply to @lova11:
Thanks a lot, I would try it, but I do not have an account there, and I prefer not to open too many accounts in many brokerages...
Thanks anyway:)
Andrei
To add to the message by BobC: PAUIX is different from OAKBX not only in style but also in its tax inefficiency, so it is better to keep it in a tax-advantaged account.
I am not so sure about WESNX. The same managers manage also William Blair Emerging Mkts Growth N WBENX, which has a longer history, and is quite risky.
I believe that WAESX is slightly up the capitalization ladder. They say that one of their goals is to follow companies that "graduate" from their small cap stock status.
You may try the new fund from Wasatch: WAESX (it may invest in stocks of all sizes, but I guess that it will invest in small and midcap stocks). Two previous funds from Wasatch, though expensive, were pretty impressive: WAEMX and WAFMX. WAEMX is clo…
Compare FPACX and OAKBX, I am not sure that these positions are much different in terms of bonds/cash:
FPACX 34% cash, 3.6% in bonds, 43% US stocks, 13% international
OAKBX 15% in cash, 13% in short term Treasuries (i.e. almost cash), 57% US stock…
I wonder what is your time horizon? If you are looking at the 5 years outperformance, you may easily find a fund beating OAKBX. On the other hand, such funds as OAKBX and FPACX beat most other funds since their inception, and they provided incredibl…
I watched presentation by Gundlach today, mostly his vision of the present situation in economy and various markets. My feeling was that he expects volatility ahead because of the government inability to address various issues - nothing surprising h…
Reply to @MaxBialystock:
Dear Max, DBLTX has average effective duration about 2 years. This is rather safe with respect to the eventual rise of interest rates. Moreover, if I get it right, high yields will additionally protect the fund from going …
There is an interesting exception from the rule formulated by Charles:
"- Every fund listed (5 years or older) with current yields of 6% or more, lost more that 20% of its value in 2008, except three: PIMCO Income A PONAX, which lost only 6.0%; TCW…
Reply to @rmt: VCVSX has expense ratio 0.59%, which is about 1% below Rivernorth / Oaktree High Income Fund. Hopefully they will find a way to compensate for this difference.
WAFMX (for frontier markets) opened a year ago, and during this year it performed even much better than WAEMX, 30% up in 11 months or so. Of course, frontier markets is a wild animal, but so far so good. Recently Wasatch opened another fund, WAESX …
Reply to @Investor:
GLRBX was doing great, its performance looks fantastic, but I guess it is in part because of its smallcap and midcap part, in part because of having 50% in bonds, 70% of which were in Treasuries. This last part seems pretty dan…
Mark,
I can certainly buy TFSHX in my 403b account (similar to 401k for educators). Not many people expect these funds, or any other alternatives, to outperform stocks over the long run. The main reason to add them to a portfolio is the same as wit…
“We find little evidence that any forecaster consistently predicts better than the consensus (median) forecast and, further, we find that forecasters who gave better than-average predictions in one year were unable to sustain their superior forecast…
Reply to @Mark: Dear Mark,
Perhaps you did not notice that the fund that I discussed, TFSHX, is not long/short but Hedged Futures fund. The reason why some of us are interested in long/short and hedged futures is that there are not so many tools fo…
Indeed I just called them and asked, and the answer was exactly as you said: They are not trend followers, they just buy what is undervalued. The summary can be found here: http://www.tfscapital.com/products/mutual/files/TFSHX_November_Summary.pdf