Category Archives: Funds

Aegis Value Fund (AVALX)

By David Snowball

THIS IS AN UPDATE OF THE FUND PROFILES published in 2009 and 2013.

Objective and strategy

The fund seeks long-term capital appreciation by investing in a diversified portfolio of very, very small North American companies. 

Aegis believes excess returns can be generated by:

  • purchasing a well-researched portfolio of fundamentally sound small-cap stocks trading at low valuations during periods of stress or neglect, when liquidity is low and investor sentiment is poor,
  • holding these investments patiently through periods of short-term price volatility while fundamental conditions normalize, and
  • selling after fundamental trends reverse, as recovery becomes visible and investor sentiment improves, driving valuations higher.

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GQG Global Quality Dividend (GQFPX / GQFIX)

By David Snowball

Objective and strategy

The strategy is to assemble a portfolio of 35-70 stocks. The target universe is high-quality, dividend-paying securities of U.S. and non-U.S. companies, including those in emerging market countries. GQG Partners primarily relies on fundamental, rather than quantitative, research to evaluate each business based on financial strength, sustainability of earnings growth, and quality of management. The investment strategy is quality first; from the pool of firms that meet its Continue reading →

Artisan International Explorer (ARDBX/ARHBX)

By David Snowball

Objective and strategy

The investment team seeks to invest in high-quality, undervalued businesses with the potential for superior risk/reward outcomes. The investment universe is generally non-US equities with market caps below $5 billion. The portfolio is typically 25-50 holdings, with individual holdings capped at about 10% and cash generally under 15%.

Adviser

Artisan Partners, L.P. Artisan is a remarkable Continue reading →

Funds worth watching for: Genoa Opportunistic Income ETF and Dynamic Alpha Macro Fund

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 we survey actively managed funds and ETFs in the pipeline. Summer is a slow time for new fund launches, with the pipeline filling up in November in anticipation of reaching the market by December 30.

Many new funds, like many existing funds, are bad ideas. (Really, you want an ETF that invests in a single AI stock?) Most will flounder in rightful obscurity. That said, each month brings Continue reading →

Osterweis Strategic Income Fund (OSTIX), April 2023

By David Snowball

“Yearning for the good old days is not an investment strategy”

Objective and strategy

The strategy is to preserve capital and attain long-term total returns through a combination of current income and moderate capital appreciation. The managers invest in income-producing securities, primarily high-yield bonds, but will shift the allocation to managing a changing risk and opportunity set. Such changes might include shifting toward higher quality or shorter duration securities and increasing the fund’s cash stake. As of February 28, 2023, 77% of the portfolio is invested in high-yield bonds with an average duration Continue reading →

RiverPark Strategic Income Fund (RSIVX)

By David Snowball

Objective and strategy

The fund is seeking high current income and capital appreciation consistent with the preservation of capital. The managers invest in “money good” securities; that is, in securities where the underlying strength of the issuer is great enough that “the risk of loss of principal due to permanent impairment is minimal.” It can invest in both investment grade and non-investment grade securities depending on market conditions and opportunities. They can also invest in Continue reading →

Seafarer Overseas Value Fund (SFVLX), April 2023

By David Snowball

“We are living through investment regime change”

Objective and strategy

Seafarer Overseas Value pursues long-term capital appreciation. The fund typically invests in common stocks, though the managers have the ability to add both preferred stocks and fixed-income securities. The investable universe includes both emerging markets, as traditionally conceived, and companies domiciled in selected foreign developed nations Continue reading →

Towpath Focus: Adventures of a Growth Manager in Valueland

By David Snowball

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 →

Vela Large Cap Plus I (VELIX)

By Dennis Baran

Let’s be blunt!

Why bury the lead?

“90% of everything is crap.”

 

 

 

 

That’s Ric Dillon, the fund’s PM, quoting Theodore Sturgeon (1918-85), a science-fiction author frustrated by a prevailing thought of his time– that works of science fiction are universally bad.

His defense of his chosen field, argued in a New York University lecture hall, can be boiled down to a simple argument. Continue reading →

Harbor International Small Cap (HIISX / HNISX), September 2022

By David Snowball

Objective and strategy

Harbor International Small Cap Fund pursues long-term growth by investing in a diversified portfolio of international small-cap stocks. They have three particular preferences:

  1. demonstrate traditional value metrics primarily on a price to book, price to earnings, net asset value (NAV), and/or dividend yield basis;
  2. well-capitalized and transparent balance sheets and funding sources; and
  3. business models that, through a complete business cycle, generate returns on equity or invested capital in excess of their cost of capital.

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