July 1, 2021

By David Snowball

Welcome to July, dear friends.

It’s summertime, an especially blessed and cursed interval for those of us who teach. On the one hand, we’re mostly freed from the day-to-day obligation to be in the classroom. Some of us write, some travel, some joke about “going topless at the beach” which translates to leaving their masks at home, some undertake “such other duties as may from time to time be assigned” by our colleges. On the other hand, we hear the clock ticking. All year long, as we try to face down a stack of 32 variably literate essays at 11 p.m. Sunday night, we think “if I can just make it to summer, I’ll recharge and it’ll be great!” About the first thing we notice when summer does arrive, is that summer is almost Continue reading →

Uncorrelated Funds for Building a Low Risk Portfolio

By Charles Lynn Bolin

Correlation measures the relationship between two assets such as stocks and bonds and has a value of +1.0 for two assets that are perfectly correlated and -1.0 for two assets that move in the opposite direction. The most common example of correlation is that the S&P 500 has a correlation of about zero to US Bonds. The balanced 60 stock and 40 bond portfolio is familiar to investors as a way of building a portfolio of these two uncorrelated assets. In this article, I search for Continue reading →

MFO Premium Webinar: Mid-Year Review and Latest Site Upgrades – Thursday, 15 July 2021

By Charles Boccadoro

The next MFO Premium webinars will occur Thursday, July 15th.

Our premium search tool site helps individual investors and financial advisers 1) sort through the vast number of funds available today based on criteria important to them, 2) maintain candidate lists of promising funds to conduct further due diligence on, and 3) monitor risk and return performance of their current portfolios. Continue reading →

Launch Alert: First Eagle Small Cap Opportunity Fund

By David Snowball

On July 1, 2021, First Eagle Investment Management launched the First Eagle Small Cap Opportunity Fund (FESAX / FESCX / FESRX). The investable universe is primarily domestic small- and micro-cap value stocks. In general, they’ll own 180 – 300 of them.

The fund pursues an opportunistic small-cap value strategy, investing in companies that the portfolio management team believes to be attractively valued and have the potential to benefit from a catalyst—such as new management, a more favorable business cycle, product innovation and/or margin improvement—for a recovery in earnings growth. Small caps are very sensitive to asset flows and even small changes in underlying economic conditions, as a result, Continue reading →

Launch Alert: AMG Yacktman Global

By David Snowball

On July 1, 2021, AMG Funds and Yacktman Asset Management launched the AMG Yacktman Global Fund (YFSNX).

Sort of.

In reality, Yacktman chose to dump the least attractive name in their stable – AMG Yacktman Focused Fund – Security Selection Only – in favor of the simple “Global” moniker. Yacktman manages two of the most outstanding funds in excellent: Yacktman (five stars, Silver-rated, Great Owl, multi-million dollar investment by the lead managers, top 2% returns over 15 years) and Yacktman Focused (five stars, Silver-rated, Great Owl, multi-million dollar investment by the lead managers, top 1% returns over 15 years). Yacktman Global uses the exact same security selection process Continue reading →

Launch Alert: Semper Brentview Dividend Growth Equity

By David Snowball

On June 1, 2021, Semper Capital Management (semper as in “semper fidelis”) launched Semper Brentview Dividend Growth Equity Fund (SEMBX) in partnership with Brentview Investment Management. Both are minority-owned advisers, with Semper being veteran-owned as well. Brentview has an AUM of $175 million, so they’re a capable firm. They intend to provide both a high level of risk-adjusted current income and the prospect of capital growth.

The fund is currently available only to Continue reading →

great horned owl

Channel Short Duration Income Fund (CPSIX)

By David Snowball

Objective and strategy

Channel Short Duration Income Fund pursues total return, comprised of both income and capital appreciation. In general, at least 65% of the portfolio will be investment-grade securities and up to 35% might be high-yield bonds. The bulk of the portfolio is short-term investment-grade debt, but the manager can opportunistically add other securities – longer-term debt, for instance – so long as the portfolio as a whole maintains a weighted average duration of 1 to 3.5 years.

The adviser expects the portfolio to be Continue reading →

great horned owl

Appleseed Fund (APPLX)

By David Snowball

Objective and strategy

The Appleseed Fund seeks long-term capital appreciation. They do that through a portfolio that combines a global, all-cap portfolio of undervalued equities with other diversifying, and sometimes defensive, assets. Its investable universe centers on companies that have “sustainable competitive positions, solid financials, and capable, shareholder-friendly management teams.” The “other assets” in the fund might include bonds (though it currently does not), convertible securities, ETFs, commodities, REITs, and other real estate entities, currencies, and cryptocurrencies. Finally, they use Continue reading →

old alarm clock

Manager Changes, June 2021

By Chip

Each month we track changes to the management teams of actively managed, equity-oriented funds and ETFs. That excludes index funds and most fixed income funds. The index fund exclusion is pretty straightforward: in a passive fund, the managers are interchangeable cogs whose presence or absence is almost always inconsequential to the fund’s performance.

Similarly, most bond fund managers have a very limited ability to add value. Over the past ten years, for instance, the top-performing Core Bond fund in Continue reading →

fountain pen writing a note

Briefly Noted

By David Snowball

Updates

AMG River Road Long-Short is no more. At an as-yet-unspecified date following the inevitable shareholder approval, the $20 million / four-star AMG River Road Long-Short Fund will be wiped away, with its regulatory paperwork giving rise to AMG River Road International Value Equity Fund. Its portfolio (which has only 5% international equity exposure) will be liquidated and replaced with a new all-cap, absolute value portfolio. The new managers will be Continue reading →