Envisioning the Chaos Protected Portfolio

By Charles Lynn Bolin

President-elect Trump is picking his staff appointees who are perceived by some to be controversial, unqualified, or even extremists. The justification is often that they are disruptors who will challenge the status quo. The rhetoric is increasing about adding tariffs, eliminating agencies, reducing regulations, and cutting Federal spending and staff. Rhetoric moves markets. This article is about protecting our portfolios from chaos during times of high uncertainty.

During the first three years of President Trump’s first term, Federal spending increased by nine percent after adjusting for inflation. This was partly because the 2017 tax cuts did not generate sufficient growth to pay for themselves. During the next four years with the pandemic-era stimulus, Federal spending increased by an additional seventeen percent adjusted for inflation. Federal spending is Continue reading →

Briefly Noted

By TheShadow

The Intrepid Small Cap Fund was reorganized into the Intrepid Capital Fund on November 22. Eric Cinnamond managed the Intrepid Small Cap Composite from 1998-2010 and the Intrepid Small Cap Fund from 2005-2010. Jayme Wiggins took over the Intrepid Small Cap Fund upon Eric’s departure in 2010.  Jayme Wiggins managed the fund using the same absolute return investment strategy until September 2018. Both are now part of Palm Valley Capital Management.

The Oakmark U.S. Large Cap ETF is in Continue reading →

Top Performing Multi-Cap Core Funds (FCTDX, VTI, VTCLX)

By Charles Lynn Bolin

How simply can we invest without getting too simple? Three of my largest holdings are multi-cap core funds held in accounts managed by Fidelity, Vanguard, or myself. I own Vanguard Total Stock Market Index ETF (VTI), Fidelity Strategic Advisers US Total Stock (FCTDX), and Vanguard Tax-Managed Capital Appreciation Admiral (VTCLX). What is under the hood of these funds and how well do they perform compared to the market?

According to the Refinitiv Lipper U.S. Mutual Fund Classifications, multi-cap core funds “by portfolio practice, invest in a variety of market capitalization ranges without Continue reading →

Launch Alert: AlphaCentric Real Income Fund

By David Snowball

On November 1, 2024, the former AlphaCentric Strategic Income Fund was rebranded as AlphaCentric Real Income Fund with a new sub-advisor, broader strategy, and new expense ratio to accompany its new name.

CrossingBridge Advisors will manage the investment strategy by employing a team approach.  Portfolio managers are T. Kirk Whitney, CFA, who joined the firm as an analyst in 2013, Spencer Rolfe, who first joined in 2017, and David Sherman, CIO. CrossingBridge, with over $3.2 billion in assets as of 8/31/24 was Continue reading →

Launch Alert: Bridgeway Global Opportunities Fund

By David Snowball

On October 15, 2024, Bridgeway Capital launched Bridgeway Global Opportunities Fund (BRGOX), a long/short equity fund that will pursue long-term positive absolute returns while limiting exposure to general stock market risk. Using advanced quantitative modeling, the fund will hold 250-300 long positions and 250-300 short positions. The portfolio is designed with a bias toward quality, value, and sentiment. It will otherwise be neutral as to country, size, sector, and beta. That is, it will shoot for a beta of zero, a net China exposure of zero, and so on.

The fund will be managed by a Bridgeway team led by Co-Chief Investment Officer Jacob Pozharny, PhD.  He joined Continue reading →

Living Paycheck To Paycheck and the Role of Financial Counselors

By Charles Lynn Bolin

For most of us, saving money is the first step to investing, yet 25% to 35% of Americans are living paycheck to paycheck. This article looks at why people are living paycheck to paycheck and how lower- and middle-income Americans in particular may be able to increase emergency savings leading to saving more for retirement. The concepts are just as relevant to higher-income people as well.

In addition to volunteering at Habitat For Humanity, I also volunteer at a local non-profit organization, Neighbor To Neighbor, which offers programs in eviction avoidance, utility shut-off avoidance, affordable housing, housing search, foreclosure prevention, and counseling including financial coaching, debt consolidation, and reverse mortgages. Many of the people seeking assistance at Neighbor To Neighbor have experienced Continue reading →

Briefly Noted …

By TheShadow

AKRE Focus ETF is in registration. The Fund invests primarily in securities of companies listed on U.S. stock exchanges. Investments consist primarily of common stocks of companies of any size market capitalization. John H. Neff will be the portfolio manager. Expenses have not been disclosed. Mr. Neff also comanages Akre Focus Fund, which was founded by the namesake Charles Akre. Mr. Akre was remarkable, engaging, and … well, old. He retired from day-to-day management about three years ago. Since then Akre Focus Fund has performed in the way it was designed: exceptional in down markets, reasonable in up markets. In the absence of Mr. Akre, that seems not to have convinced shareholders to stay:

In the fund’s three “laggard” years, including 2024, it’s made an average Continue reading →

October 1, 2024

By David Snowball

Dear friends,

Welcome to the Samhain / the coming of the dark edition of the Mutual Fund Observer!

October is an interesting month. Traditionally perilous for the financial markets. It begins with the sullen remnants of summer and ends with festivals of the harvest (even for those of us in cities) and of the coming season when nature slips into dormancy. Halloween, whose sales now begin in August and whose iconic ghouls now Continue reading →