Dear friends,
Welcome to the darkest and brightest season of the year. Each year we share the reminder of a long and resolute human impulse: to stare into the gathering gloom, frozen fields, and biting winds and to declare, “we will not surrender to the darkness, within or without. Light the fires, summon the family, call our friends and set the table. Tonight, we rejoice together.” Continue reading →
On December 31, 2019, Oelschlager Investments launched the Towpath Focus Fund (TOWFX). The fund invests in 25-40 domestic stocks regardless of market capitalization. The fund is managed by Mark Oelschlager.
Towpath is a concentrated, all-cap equity fund. The portfolio currently holds 41 securities. About 15% of the portfolio is invested in non-US stocks and 12% in cash. Compared to its Morningstar peers, the fund has more cash, more international, and more small-cap exposure. The portfolio stocks are higher growth companies (measured by sales, cash-flow, and book value growth) that sell for lower prices (measured by price-to-book, price-to-earnings, and price-to-sales) with higher returns than either their peers or their index. Continue reading →
We are approaching the end of an extraordinary year, one that has left many of us – citizens, investors, employers, workers, and parents – feeling whipsawed, anxious and confused. Much of that comes from the sense that we can’t figure out what’s behind this year, so we don’t have much hope about managing, much less thriving in, the year ahead.
I entirely agree with your feelings, but I’m here to suggest that you take a deep, cleansing breath. We’re doing better than you know, and if we keep our wits about us, we’re going to do okay. Continue reading →
I hope that Readers enjoyed their Thanksgiving as much as I did and wish everyone a safe and happy holiday season and a prosperous new year.
I expect this Santa Claus Rally will give way to a New Year’s hangover as investors start to anticipate a recession more than they fear inflation. On November 10th, the Consumer Price Index for all Urban Consumers was released to show the inflation rate increased by 7.76% from a year ago and 0.44% from the previous month which is still a high annual rate of 5.3%. The minutes of the November Federal Open Market Committee Meeting provide insights: Continue reading →
On September 1, 2022, Fidelity launched Fidelity Hedged Equity (FEQHX) which is also available in five Fidelity Advisor share classes.
The goal is Fidelity Hedged is to provide capital appreciation. Presumably, it’s also to provide capital appreciation with less volatility than the stock market, hence the “hedged” piece. The strategy is to invest in an S&P 500-like stock portfolio. That means some growth and small value but mostly large cap. The managers then apply “a disciplined options-based strategy designed to provide downside protection” mostly by buying put options, which appreciate when the relevant underlying asset depreciates. Generally, the hope is Continue reading →
Bridgeway’s Omni Tax-Managed Small-Cap Value Fund will be converted into the Omni Small-Cap Value ETF. The conversion will require the approval of existing shareholders. If the conversion is approved, it is expected to take effect on or about during the first quarter of 2023.
Fidelity, likewise, is moving more funds into an ETF wrapper. Two and a half years ago, Fido launched a series of trendy funds which promises to find the disruptors, not just the innovators, and profit from them.
To date, the funds have gathered Continue reading →
