Friday's fun put all 30 of our funds into negative territory for the year-to-date. Coming into Friday, we had a handful of our funds holding onto year-to-date gains, but that was all washed away in Friday's losses. Friday was the worst single day for the markets since 2011.
Janus Contrarian still leads the pack with a loss of only .24%.
Monday is carrying prices still lower, so we may need to get used to seeing red for the calendar year, at least for a while.
Monday, January 27, 2014
Sunday, January 26, 2014
Charlie Dreifus on Wealth Track
Charlie Dreifus, manager of Royce Special Equity Fund (RYSEX), gives his usual amusing interview on this week's edition of Wealth Track with Consuelo Mack. To a large extent he talks about his newer fund, Royce Speacial Equity Multi-Cap (RSEMX).
We're also starting to see ads for RSEMX. Charlie and Royce Funds seem to be wanting to pump up the AUM for this newer fund. It's not hard to understand why. Charlie is currently managing 3.5 billion in his small cap fund, but only 180 million in his mid to large-cap fund -- (roughly 20 times more money in the small cap fund).
He rightly states in this interview that the management fee (for RSEMX) has been lowered to a very fair .85%. However, that doesn't tell the whole story. According to the Royce Funds website, there is also a "distribution" (12-b1) fee, plus a fee of .26% for "other expenses". A fee waiver at present keeps current fees at 1.24%, but that is still too high. An investor needs to understand that these fees do not include trading costs. Even with the waiver, total fund expenses are going to be around 1.5%.
12b-1 fees are essentially evil, but tolerable if the management fee is low enough. The fee for "other expenses" is uncommon, although it is also levied for other Royce funds. All told, 1.5% is a heavy burden to have to drag along. It's not easy to beat any benchmark by 1.5% over time.
Despite the fees, the newer fund is intriguing, and should do well. It is troubling, however, to see ads trumpeting Charlie Dreifus as "a brilliant investor". Does the Moron believe him to be a "brilliant investor"? Well......yes, but it's still disturbing to see it writ large in advertising.
We're also starting to see ads for RSEMX. Charlie and Royce Funds seem to be wanting to pump up the AUM for this newer fund. It's not hard to understand why. Charlie is currently managing 3.5 billion in his small cap fund, but only 180 million in his mid to large-cap fund -- (roughly 20 times more money in the small cap fund).
He rightly states in this interview that the management fee (for RSEMX) has been lowered to a very fair .85%. However, that doesn't tell the whole story. According to the Royce Funds website, there is also a "distribution" (12-b1) fee, plus a fee of .26% for "other expenses". A fee waiver at present keeps current fees at 1.24%, but that is still too high. An investor needs to understand that these fees do not include trading costs. Even with the waiver, total fund expenses are going to be around 1.5%.
12b-1 fees are essentially evil, but tolerable if the management fee is low enough. The fee for "other expenses" is uncommon, although it is also levied for other Royce funds. All told, 1.5% is a heavy burden to have to drag along. It's not easy to beat any benchmark by 1.5% over time.
Despite the fees, the newer fund is intriguing, and should do well. It is troubling, however, to see ads trumpeting Charlie Dreifus as "a brilliant investor". Does the Moron believe him to be a "brilliant investor"? Well......yes, but it's still disturbing to see it writ large in advertising.
Wednesday, January 22, 2014
Put Me in Coach!......COH
If the Moron had any money to put into an individual stock, he would gladly buy Coach (COH) here at under $50 a share. Everyone says the market is expensive. Maybe it is. But give me COH here at <$50 and five years, and we'll just see where we are in January 2019.
(Since this isn't exactly a 100%er, we won't make it an "official prediction")
(Since this isn't exactly a 100%er, we won't make it an "official prediction")
Out of the Starting Gates in 2014
Our Year-to-Date leader has held the spot for 12 calendar days now, and leads its nearest rival by over a full percentage point, so it's time to announce it:
It is Janus Contrarian, up 3.40%.
In last place at #30 is Royce Special Equity down 1.96%.
We currently have 15 funds up, 14 funds down, and one unchanged for the year so far.
The Moron is willing to make one sure-fire, absolute, can't miss prediction to his loyal followers (both of them):
By the end of the year, Royce Special Equity will NOT be in last place. (You heard it here first and you can take it to the bank.)
And remember, the Moron always bats 1.000 on his official predictions!
It is Janus Contrarian, up 3.40%.
In last place at #30 is Royce Special Equity down 1.96%.
We currently have 15 funds up, 14 funds down, and one unchanged for the year so far.
The Moron is willing to make one sure-fire, absolute, can't miss prediction to his loyal followers (both of them):
By the end of the year, Royce Special Equity will NOT be in last place. (You heard it here first and you can take it to the bank.)
And remember, the Moron always bats 1.000 on his official predictions!
Wednesday, January 1, 2014
Final Numbers for 2013
And the Moron called the results in 2012 "gaudy"? 2012 pales in comparison to the gains we saw in 2013.
2013 was a year in which stocks hugely outperformed bonds or cash, so funds that were fully invested in equities show up at the top. It was a year in which domestic (USA) stocks outperformed foreign stocks, so foreign and international funds are found low on the list. It was a year in which small and mid-cap stocks outperformed larger stocks. Finally, it was a year in which quality shares tended to underperform, and in which more speculative fare tended to outperform.
All in all, it was the best year for US stocks in nearly 20 years.
MFM Fund of the Year? Ariel Fund. Congratulations to John Rogers and the team.
2013 Final Standings
Top 10
1. Ariel +44.68%
2. Kinetics Paradigm 44.07
3. Bridgeway Aggressive 42.21
4. Franklin Sm-Mid Cap 38.58
5. Janus Contrarian 38.51
6. TRP Mid Cap Growth 36.89
7. Franklin Balance Sheet 36.61
8. Col. Val. & Restructg 35.96
9. Mairs & Power Grwth 35.64
10. Fairholme 35.54
The Great Unwashed (#11-20)
11. Sequoia 34.58
12.Fidelity Contra 34.15
13. Osterweis 33.84
14. VTSMX 33.52
15. Jenson Qty. Grwth 32.33
16. VDIGX 31.53
17. FMI Large Cap 30.48
18. Templeton Grwth 30.15
19. Royce Special Equity 29.36
20. TRP Spectrum Grwth 28.59
The Bottom Ten
21. Mutual Shares 28.10
22. Yacktman 27.74
23.Dodge & Cox Int'l 26.31
24. Perkins Mid Cap Value 25.92
25. Oakmark Eq & Income 24.25
26. TRP Cap App 22.43
27. FPA Crescent 21.95
28. Litman-Gregy MS Int'l 21.47
29. Third Ave. Value 18.84
30. Franklin Income 14.23
2013 was a year in which stocks hugely outperformed bonds or cash, so funds that were fully invested in equities show up at the top. It was a year in which domestic (USA) stocks outperformed foreign stocks, so foreign and international funds are found low on the list. It was a year in which small and mid-cap stocks outperformed larger stocks. Finally, it was a year in which quality shares tended to underperform, and in which more speculative fare tended to outperform.
All in all, it was the best year for US stocks in nearly 20 years.
MFM Fund of the Year? Ariel Fund. Congratulations to John Rogers and the team.
2013 Final Standings
Top 10
1. Ariel +44.68%
2. Kinetics Paradigm 44.07
3. Bridgeway Aggressive 42.21
4. Franklin Sm-Mid Cap 38.58
5. Janus Contrarian 38.51
6. TRP Mid Cap Growth 36.89
7. Franklin Balance Sheet 36.61
8. Col. Val. & Restructg 35.96
9. Mairs & Power Grwth 35.64
10. Fairholme 35.54
The Great Unwashed (#11-20)
11. Sequoia 34.58
12.Fidelity Contra 34.15
13. Osterweis 33.84
14. VTSMX 33.52
15. Jenson Qty. Grwth 32.33
16. VDIGX 31.53
17. FMI Large Cap 30.48
18. Templeton Grwth 30.15
19. Royce Special Equity 29.36
20. TRP Spectrum Grwth 28.59
The Bottom Ten
21. Mutual Shares 28.10
22. Yacktman 27.74
23.Dodge & Cox Int'l 26.31
24. Perkins Mid Cap Value 25.92
25. Oakmark Eq & Income 24.25
26. TRP Cap App 22.43
27. FPA Crescent 21.95
28. Litman-Gregy MS Int'l 21.47
29. Third Ave. Value 18.84
30. Franklin Income 14.23
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