"This week, we asked readers to share their favorite hidden-gem fund picks. (By "hidden gem," we generally mean a fund that is relatively undiscovered by the masses and hasn't yet amassed a large asset base.) We also asked our readers to give some reasons why they think these funds deserve more attention than they're getting."
GASFX, VTMFX, BRUFX, MACSX, TGEIX, NEWFX, TAREX, VWALX, GIM, GLRIX, ECON, MICSX, ACP, EFAV, SCHD, SFGIX, YYY PDI, BGH, PCI, VCSAX, DRSVX, FOF, PKO
Link:
news.morningstar.com/articlenet/article.aspx?id=714467&SR=Yahoo

Echos of Andrew Foster's outlook going back three years - and he's crushed the index with SFGIX. Still, even following the Foster/GaveKal formula, EMs haven't done much, in absolute terms.

"Beneficial ownership" occurs when shares that I purchased are legally held in another entity's name. If you look at Seafarer's SAI, you'll see that the single largest shareholder of SFGIX is Charles Schwab at 77.5% of shares outstanding. If you bought Seafarer through Schwab, your shares are beneficially owned.
Seafarer is, by the way, rolling along. $717 million in AUM and a thousand basis point lead over its average peer. I finally got around this week to selling the shares that I owned beneficially through Scottrade; as soon as the check arrives, I'll become a direct shareholder with an AIP. Then watch out, Chuck, I say! The Iowa State Lottery lump-sum is $24 million right now; all by itself, that'll catapult me to a "top five" listing.
David

Not much to choose from. Andrew Foster argues that in the emerging markets, value hasn't worked because the corporate structures are so intertwined that the catalysts to unlock value never appear. He thinks that's changing, but slowly.
Pear Tree Polaris Small Cap (USBNX) or Pear Tree Polaris Foreign Value Small Cap (QUSOX) are worth checking; Polaris took over the former fund at the start of 2015. Causeway International Small Cap (CVISX) is new but value leaning and the Causeway folks have a pretty good heritage. Seafarer Overseas Growth & Income (SFGIX) has a much smaller cap than its peers and is, as you know, a favorite of mine.
I'll ponder a bit more.
David

Andrew Foster (former Matthews, now SFGIX/SIGIX) has already considered that Asia holds value-plays by now, in a recent semi-annual report or conference call.

Hi VF,
I think a strong dollar will be headwinds for us stateside investors who are invested in emerging markets. As of my last Intsant Xray analysis I have about five percent of my equity allocation in emerging markets. I will need to see some upward price movement in this asset class before I add more to these positions. Currently, the two emerging market funds that I own are THDAX & NEWFX plus some other funds that have a small part of their portfolio invested in e/m. In review of my asset allocation funds, I am not finding where any of them have but token weightings to e/m.

I got a smattering of WAEMX and SFGIX in taxable and GPGOX in IRA. I used to have some CEMVX but sold it some time back. I might peek in with Grandeur Peak some time.

It's all Trad. IRA, except for SFGIX and DLFNX. I invested in those in a normal taxable account just because I maxed-out the IRA for that year. And I like them, so don't want to mess with them. I need SOMETHING in a standard investment account that's not tax sheltered, anyhow. I also just started a tiny position in a N.M. utility, PNM. (DSPP.)
I have taken no IRA distributions at all, yet. PRWCX ended-up with a big chunk of the money I cashed-out of PRASX, and I was looking for an excuse to dump most of the PRASX, anyhow. When China started playing around with the renminbi and with all the tension over US rates, I recently pulled the plug on PRASX. I have read a discussion thread over at M* about MAPOX and PRWCX. Some folks hold PRWCX as up to HALF of their stuff. That seems awful scary to me. Anyhow, MAPOX and PRWCX are my core funds, my anchors. Thanks for the reply...

It's my best performer, lately. But it's worrisome that this fund holds over 37% of my total: PRWCX. I wanna keep the money within TRP. Should I open a position in the Balanced Fund RPBAX? Div. Growth PRDGX? PEXMX? I have no midcap fund yet. This would be a core holding. With PRWCX and MAPOX, I already own two Mod. Alloc. funds. Not wanting to collect any more funds, but this needs to be done. Current lineup: DLFNX, PRSNX, PREMX, MAPOX, MSCFX, SFGIX, PRWCX, PRDSX, TRGRX, PRASX, and VSCIX. (Or NAESX or maybe one or two other tickers for the same fund, in wifey's 403b. We have received literature from both Vang. and the Plan Admin. (Mass. Mutual) which includes references to 4 different tickers. Because they don't care whether or not we know which doggone share class we're in. So, wifey will have to go to HR to find out. And they won't know anything, and will tell us to call Mass. Mutual. And they won't know what Vang. has sent us directly, and vice-versa. FUBAR.) .....
DLFNX, SFGIX, PRASX, MSCFX, VSCIX are all very small positions, less than 3% each of total portfolio. Thoughts? Thanks in advance.

According to M* x-ray portfolio, I have about 10% exposure in EM, mainly through SFGIX and RNWGX (also some thru several diversified international funds). Active management is what I prefer in this asset class. Sold majority of Matthews funds and reallocated them to Seafarer.

Hi @bee,
Although there are times when I worry a little about David's idea that we're irresistibly drawn to bright shiny objects, which I tend to think of as performance chasing, I try to be cautious with both additions and subtractions from my list. I'm pretty sure the last time something was taken off my list was 2012 when I went through a fairly significant revision to my approach and most of those eliminated would have been higher asset funds with higher expense ratios that didn't impress me anymore or funds where my interest was driven in large part by a manager who was no longer there.
In the last 12-18 months I've added a few funds I learned about here, like SFGIX, QUSOX, MEASX and VVPLX, and one I initially read about on M* and then subsequently read a bit more about when I searched for it here, which was KGGAX.
Here are the 16 I currently own. Since I hate when M* writes about funds only to find out they're closed, I've put a star next to those.
Large cap: PTSGX*, OAKWX, IWIRX, MAPIX, HEDJ, DXJ, PRHSX*
Mid cap: POAGX*, PRNHX*, KGGAX, MEASX, WAFMX*
Small cap: FSCRX*, OBIOX, GPIOX*, GPEOX*
HEDJ and DXJ are really just currency/QE bets on Europe and Japan for me and weren't chosen from my list, but when I'm done with those bets the money will go back into funds I already own or something new from my list (more likely the former than the latter).
I have one spot open currently because until recently I owned WAAEX and had decided I would replace it with Grandeur Peak's US small cap fund when/if it eventually launches but I decided I'd rather hold cash in the meantime.

Finally sold it today. I bought it at the end of 2013 when they had an advisor class of
share. I have to see what I can replace it with. I also sold MACSX and Trow Price Real Asset funds this Week. I already have SFGIX, that is why sold MACSX. Trow Price one is a meek attempt at buying energy sector. I think I would rather buy a pure play, so it is out.
Invested my wife's Roth allocation into VMVFX. Money was sitting in MM fund since April. I already have VMVFX in IRAs, moved into it as an exchange for VHGEX at the end of last year, making it the largest fund in portfolio. Still at 13% of Cash in the retirement accounts.

I would wait to see a portfolio and preferably a M* portfolio x-ray. There will likely be differences in the research and support capabilities moving from Thornburg to Artisan, so I would not be an early buyer. In the EM equity space, I continue to like SFGIX/SIGIX, and among ETFs, I would take a look at SCHE and EEMV.
Kevin

Perhaps because I also have more funds than many on this board would deem prudent, I agree with Skeet.
I have the allocation categories covered, but also with multiple funds. As an example, my foreign allocation within both pre-tax and after-tax accounts consists of MAPTX, ARTGX, GPGOX, SFGIX, MINDX and FMIJX.
The "risk of ruin" is diminished due to spreading the allocation among managers and geography. And the fees are no more than aggregating into one fund of average cost.
press

@Crash: SFGIX is a winner, winner, chicken dinner. If I were to own a EM Fund, it more than likely would be this one. YTD performance in excess of 10% while EM category average at 2.5%.
Regards,
Ted

SIGIX SFGIX: just found this in my email.
"...we have decided to discontinue the “Shareholder Conference Call” that Seafarer held semi-annually since the Fund’s inception. The conference call was a useful way to communicate with existing and prospective clients, but over time it became apparent to us that the format (a live call, followed by an audio replay available on the Seafarer website) was not sufficiently timely, accessible, or searchable. In our view, we can disseminate content of similar (or better) quality via our forthcoming videos and written commentaries, and these new content formats will prove more focused, timely, accessible and interactive than our past conference calls. We are excited to move in this new direction..."
http://www.seafarerfunds.com/fund/shareholder-letter

Global: ACWV, HCOYX, PGVFX, DGSCX
International LC: EFAV, MINIX
International MC/SC: BISMX, QUSOX, OSMYX
EM: EEMV, SFGIX/SIGIX
Kevin

Global: Ariel Global (AGLOX)
Int'l: FMI (FMIJX)
Int'l SC: JOHambro (JOSAX), TimesSquare (TCMPX)
EM: Seafarer (SFGIX)
EM SC: Grandeur Peak (GPEOX)

@ MFO Members: Here are the funds discussed by David on the show this morning.
GPEOX, GPROX, SFGIX, RGHVX, ROSSX, RYSEX, MGIAX, JGMAX, MSGAX
Regards,
Ted

MEASX
SFGIX
MINDX
PRASX
TRAMX
PRLAX
FNMIX
PREMX
DLENX

I just don't want him starting another fund. I'm good with his motivations. I just don't want to learn he started more funds later. SFGIX to me is like MAPIX and MACSX. I don't want him doing a MAPTX etc. One fund is good.