Elevator Talk: Colin Symons, Symons Value (SAVIX)

By David Snowball

Since the number of funds we can cover in-depth is smaller than the number of funds worthy of in-depth coverage, we’ve decided to offer one or two managers each month the opportunity to make a 200 word pitch to you. That’s about the number of words a slightly-manic elevator companion could share in a minute and a half. In each case, I’ve promised to offer a quick capsule of the fund and a link back to the fund’s site. Other than that, they’ve got 200 words and precisely as much of your time and attention as you’re willing to share. These aren’t endorsements; they’re opportunities to learn more.

Colin Symons manages SAVIX and has managed it since the fund launched in Continue reading →

Prelaunch Alert: Laura Geritz, Grandeur Peak and the Rondure Funds

By David Snowball

When Laura Geritz left Wasatch Advisors in June after a decade with the firm, there was a clear and understandable sense of loss. Ms. Geritz had three public charges:

Wasatch International Opportunities (WAIOX), : a $635 million international small-growth fund. It’s got a five-star rating from Morningstar. Over the past five years, it’s posted higher returns with lower volatility than its Lipper peer group. The estimable Lewis Braham reports Continue reading →

Funds in registration

By David Snowball

You know it’s a bad month for fund registrations when the most interesting thing out there is a bad idea: The ETF Market ETF (TETF). If you’ve ever thought to yourself, “there’s nothing I want more than to be trapped investing in a very limited universe of companies, almost none of whom have enduring competitive advantages,” you can now not only invest there, you can day trade if you want. (sigh) Otherwise, year-end is a slow time in the fund launch world. Continue reading →

Manager changes

By Chip

Manager changes come in three varieties: the utterly inconsequential, the individually significant and the broadly worrisome. Inconsequential changes, the vast majority of them, represent the normal tweaking of management teams or the comings-and-goings of competent but undistinguished professionals. Individually significant changes are ones where the manager made a real difference to a fund’s success, and where his or her departure might well disrupt the fund’s prospects. The dismissal of Wellington Management from Voya International Core, for example, substantially changes the fund’s profile and diminishes its short-term attractiveness. Broadly worrisome changes occur when principled managers with distinguished long-term records are dismissed because they’re “out of step” with the market. Quite frequently at the tops of frothy markets, value managers find their services no longer required. GMO famously lost 40% of its assets just before the crash of 2000 vindicated what they’d been doing. This month, the removal of Continue reading →

Briefly noted

By David Snowball

In a peculiarly peculiar move, Praxis Small Cap (MMSCX) is becoming Praxis Small Cap Index Fund. Praxis might, charitably, be described as “bad” (its five-year record trails its peers by 600 basis points annually) and “expensive” (1.68% with a 5.25% sales load). In an attempt to be less “bad,” they’re giving up active management but remaining expensive (1.13% with a 5.25% sales load). Here’s advice to prospective providers of index funds: if you can’t make it cheap, you’re going to lose. Praxis is attempting to dodge that ugly truth by being not-quite-an-index funds: its benchmark is the S&P SmallCap 600 but “the Fund seeks to avoid companies that are deemed inconsistent with the stewardship investing core values. In addition, the Adviser uses optimization techniques to Continue reading →

November 1, 2016

By David Snowball

Dear friends,

I walked along today, kicking leaves, marveling at the maples, crunching through my last Golden Russet apple and wondering at the tension between local delight and global despair. Things are good in my life. My classes are full and my students are … hmmm, fascinating in a “bright but so very different from what I recall” way. My son just earned his driver’s license and I bought him a respectable used car. I harvested my first-ever potato crop and the last of my carrots and onions, so roasted root veggies are on the menu this week. I’m happy.

The world beyond mine is less happy. Weather forecasters report that Continue reading →

Concentrated Solutions

By Leigh Walzer

Last month we discussed  Nuance Concentrated Value Fund (NCVLX.) The fund had some big exposures to less liquid names and the strategy was nearing its capacity. At some point the advisor is likely to soft-close the concentrated fund but continue to grow the smaller and more diversified midcap fund.

It is not unusual that fund purveyors offer a version with a higher concentration of the manager’s high-conviction ideas. Sometimes you can spot these derivative funds based on names like Focused or Select Opportunities.

Generally, the concentrated version is Continue reading →

Ten million miles high

By David Snowball

Technically, 10,315,656 miles high.

The IMF reported in October that global debt, government, corporate and individual, is now $152 trillion. (That’s $152 followed by 000,000,000,000.) That’s historically high, both in absolute terms and relative to global GDP. And it’s not limited to slow-growing developed economies; increasingly emerging markets are issuing debt at a record pace.

Folks at the Endowment for Human Development, who have either spiffy calculators or too much free time, calculate that Continue reading →

Priceless – Worth Absolutely Nothing!

By Edward A. Studzinski

“Under this flabby exterior is an enormous lack of character.”

  Oscar Levant

This has proven a rather difficult time to write something and feel that you are either (a) not repeating things you have said before or (b) speaking with the certainty that you are offering some genuine insight that will prove advantageous to our readers as they pursue their investment programs. For those reasons, I will endeavor to be brief, which will probably result in my being more obscure in my comments than usual. I offer thus a number of random thoughts which should Continue reading →