H.R. Pufnstuf: 10 funds to buy when things get rough.

By David Snowball

Jimmy, Freddy the magic flute and Mayor Pufnstuf (right).

H.R. Pufnstuf was the answer to the question, “Who’s your friend when things get rough?” Pufnstuf starred in a Sid and Marty Krofft cult classic TV show which debuted during “the summer of love” in 1969 and continued in reruns as late as 1999. The show’s theme song assured us that Pufnstuff, Mayor of The Living Island, was “your friend when things got rough” because “he knew just what Continue reading →

Between here and the end of the world: Ten things to know

By David Snowball

In the spring of 2019, MFO ran a two-part series on the investment implications of climate change: The Investor’s Guide to the End of the World and The Investors Guide to the End of the World, Part 2: Concrete advice. The former laid out the scientific consensus behind the human role in climate change and explained the four ways in which even the broad perception of climate change would affect your portfolio through a combination of physical, biological, regulatory, and reputational risks. We finished with three investment strategies (divest, invest, innovate) and two fund recommendations: Brown Advisory Sustainable Growth Fund (BIAWX) and Green Century Balanced (GCBLX). Since then, Brown returned 27% (versus 7% for its peers) and Green Century made 8.8% (versus 4% for its peers).

Our second article reviewed the investing recommendations of Continue reading →

Investing in the Coming Decade

By Charles Lynn Bolin

I listened to Peter Navarro’s lecture, “The Modern Scholar: Principles of Economics: Business, Banking, Finance, and Your Life” (2005) on a recent return flight to the U.S. The discussion on budget deficits was timely. The planes, airports, and hotels had very few travelers. The hotel shuttle to the airport was not running. Coronavirus cases are increasing with vaccines not expected until early 2021. For reasons described in this article, I reduced my exposure in July for stocks from 25% to 20% by trading higher-risk funds that have risen this year for less popular funds such as value as well as Continue reading →

“He said what?”

By Edward A. Studzinski

“Why shouldn’t things be largely absurd, futile, and transitory? They are so, and we are so, and they and we go very well together.”

George Santayana, in a letter to Logan Pearsall Smith (24 May 1918) in The Works of George Santayana: The letters of George Santayana 1910 – 1920 (2002), p. 319

Another month of strong market performance. Another disconnect to what is going on in the domestic Continue reading →

great horned owl

Queens Road Small Cap Value (QRSVX)

By David Snowball

Objective and strategy

The fund seeks capital appreciation by investing in the stocks or preferred shares of U.S. small-cap companies. Small caps are companies whose stocks are, at the time of purchase, valued at under $5 billion. The manager pursues a sort of “quality value” strategy: he seeks high-quality firms (strong balance sheets and strong management teams) whose stocks are undervalued (based on estimates of intrinsic value using free cash flow and book value growth models.).

In general, the portfolio holds Continue reading →

old license plates on a wall

Funds in Registration

By David Snowball

The Securities and Exchange Commission, by law, gets between 60 and 75 days to review proposed new funds before they can be offered for sale to the public. Each month, Funds in Registration gives you a peek into the new product pipeline. We found 17 active funds and ETFs in registration, some quite notable. Expect them to launch by the end of September 2020. All but two of those funds are either conservative income funds or hedged alternative funds.

The key additions are a growing number of low-cost ESG options, across a range of asset classes. We do not cover passively-managed ETFs, but fans of Continue reading →

old alarm clock

Manager Changes, July 2020

By Chip

Fund managers matter, sometimes more than others. As more teams adopt the mantra “we’re a team,” if only as window-dressing, more than more manager changes are reduced to “one cog out, one cog in.” Nonetheless, we know that losing funds with new managers tend to outperform losing funds that hold onto their teams, while the opposite is true for winning funds. Strong funds with stable teams and stable assets outperform strong funds facing instability (Bessler, et al, 2010). Because of the great volatility of their asset class, equity managers matter rather more than fixed-income investors. (Sorry guys.)

And so each month we track the changes in teams, primarily at active, equity-oriented funds and ETFs.  This month saw over 50 revisions, a total buoyed Continue reading →