MFO Premium Webinar

By Charles Boccadoro

On Tuesday January 15th, we will host a webinar discussing latest features of the MFO Premium search tool site. This time we are fortunate to be joined by Brad Ferguson of Halter Ferguson Financial, a fee-only independent financial advisor based in Indianapolis. Brad will highlight the Ferguson analysis tool, one of the site’s newest features, which helps investors identify funds with equity-like returns but tempered volatility.

Other topics covered on the call will be Continue reading →

Optimism is not always the answer

By David Snowball

But, it is, in general, the best place to begin the search for the answer. Optimists, who assume things will work out, tend to see more paths forward, more options worth considering, than pessimists (often dubbing themselves “realists”) who know that it’s eternally time to duck-and-cover.

The word “optimism” entered the English language (1759, in French 1737) several generations before pessimism (1794) did. 

The psychological research on Continue reading →

The Year That Wasn’t!

By Edward A. Studzinski

“Human life is punishment.” Seneca

“Vīta hūmāna est supplicium,” Lucius Annaeus Seneca

Looking at the detritus of the year just passed and its effect on investment portfolios, the question that will be asked ad nauseam over the next four or five weeks will be some variant on “How did this happen?” The answer is rather short and simple. You, your mutual fund portfolio manager, and the asset management firm that the fund is part of, all were too greedy.

How so? Continue reading →

Terrific twos: Intriguing funds not yet on your radar

By David Snowball

Most funds don’t show up on investors’ radar until they have at least a three year record, which is also the point at which they receive their inaugural Morningstar rating. That’s a generally sensible, sometimes silly constraint since many funds that have been operating for fewer than three years are actually long-tested strategies managed by highly experienced professionals which are just coming to market in a new form. Relatively recent examples of such funds include Andrew Foster’s Seafarer Overseas Growth & Income (SFGIX), Rajiv Jain’s GQG Partners Emerging Markets Equity (GQGPX), Abhay Deshpande’s Centerstone Investors (CETAX), and Amit Wadhwaney’s Moerus Worldwide (MOWNX). Collectively, those four managers had overseen more than $100 billion using strategies later embodied in their “too new to be on the radar” funds.

As a result, MFO Premium has Continue reading →

Launch Alert: Artisan International Small-Mid Fund (ARTJX)

By David Snowball

Effective 4 December 2018, the Artisan Partners officially rechristened Artisan International Small Cap as Artisan International Small-Mid Fund. Four other consequential changes were attendant to it:

On 15 October 2018, the fund reopened to new investors

On that same date, a new manager, Rezo Kanovich, took control of the fund. Mr. Kanovich and his analyst team, all of whom resigned on rather short notice, have guided Oppenheimer International Small-Mid Company (OSMAX) since early 2012.

On 4 December 2018, the fund’s investment guidelines formally changed to broaden the investable universe, though Continue reading →

Launch Alert: Centaur Total Return (TILDX)

By David Snowball

On November 1, 2018, the Board of Trustees of the Centaur Total Return Fund announced an epochal change: Zeke Ashton, Centaur Fund’s longest-tenured manager and one of its four founding managers, had notified the Board that he intended to resign after a run of 13.5 years. The Board announced an interim management agreement, effective November 15, 2018, under which DCM Advisors, LLC, would assume responsibility for the fund.

While the fund will Continue reading →

old license plates on a wall

Funds in registration

By David Snowball

Before funds can be offered to the public, they’ve got to be submitted to the SEC which has 70 days to review the application. In general, advisers try to launch just before years end because that allows them to have clean “year to date” and calendar year results to share. These launches will likely occur in late February or March.

Many prospectuses were still incomplete but a couple stand out for offering services from well-respected advisors: Diamond Hill, which has a Continue reading →

old alarm clock

Manager changes, December 2018

By Chip

In the course of a normal month we’ll highlight 60-70 manager changes in equity and allocation funds. We mostly skip bond funds because, frankly, it’s a danged rare fixed income team that’s materially affected by the departure of a single individual. In a fairly quiet month, 46 funds and ETFs saw partial or complete team changes.

Chip, who manages our manager changes database, notes that this is one of the first months she’s tracked where more women seemed to be joining management teams than departing them. The academic research is pretty unequivocal: having women Continue reading →

fountain pen writing a note

Briefly noted

By David Snowball

Both the stock market’s recent volatility and the financial service industry’s ongoing revolution (there’s blood in the streets!) create and foreclose opportunities. Each month we note, briefly, the recent developments that might change the number and nature of opportunities available to you.

And, in the ongoing spirit of our predecessor FundAlarm, we do occasionally point and Continue reading →