MFO Ratings Updated Through June 2019

All fund risk and return metrics, ratings, and analytics have been uploaded, reflecting performance through June 2019.

Some highlights:

  • markets rebounded in June, S&P 500 up 7.0% and 18.5% year-to-date (YTD); in fact, S&P 500 is up 14.7% annualized the past 10 years, helping make-up for previous lost decade … core bonds also up 6.1% YTD
  • the following funds have smaller assets under management ($250M or less), dual MFO Great Owl and Honor Roll designations, and delivered 20-30% YTD: DF Dent Premier Growth (DFDPX), DF Dent MidCap Growth Inv (DFDMX), YCG Enhanced R (YCGEX), Wasatch Global Opportunities Inv (WAGOX), which Robert Gardiner once managed, and Sarofim Equity (SRFMX), which David profiled in 2014
  • Hodges Capital of Dallas, TX remains in the bottom quintile of MFO’s Fund Family Scorecard … 4 of 5 Hodges’ funds are on MFO’s Three Alarm list
  • added 6, 8, and 9-yr evaluation periods to MultiSearch, bringing total to 42

Plus, encore reminder that we will be introducing a new user portal, which will make it easier for users to subscribe (including corporate accounts with up to 10 users), renew/extend, and reset passwords. It should roll-out this month. Once live, we will be stopping the auto-renewal feature, which we believe has become a presumptive practice.

As always, if you see anything amiss or have suggestions for improvement, let us know and we will respond soonest.

Please enjoy the latest data.

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Barron’s Best Mutual Funds You’ve Never Heard Of

Recently, I subscribed to Barron’s, thanks to recommendations from folks on MFO Discussion Board.

Here’s link to sweet piece by Daren Fonda, entitled “The Best Mutual Funds You’ve Never Heard Of.”

The five funds are: Bernzott US Small Cap Value (BSCVX), DF Dent Premier Growth (DFDPX), Conestoga SMid Cap Inv (CCSMX), YCG Enhanced R (YCGEX), and Homestead Value (HOVLX).

Four are MFO Honor Roll funds, two are MFO Great Owls.

Here’s how they look in MultiSearch, launch through May 2019:

 

 

The 25-Largest Funds

The 25-largest fund by AUM as of 31 May 2019, shown below along with YTD performance. The top 3 spots are Vanguard, as are 10 of the 25. What were the top 20 in 1999? See post here on Twitter by Morningstar’s Ben Johnson.

Fairholme Rebounding

As this decade comes to a close, legendary investor Bruce Berkowitz appears to be getting things right again. After making ill-timed bets on bank in 2011 and ill-advised bets on Edward Lambert and Sears in the years since, Fairholme is enjoying a resurgence. Much of the turnaround likely do to his speculation in Fannie and Freddie, which have tripled this year. (Story in WSJ today about regulators pressing to turn Fannie and Freddie private again.) Below are the YTD risk and performance numbers of his three funds: FAIRX, FOCIX, and FAAFX. Today’s AUM of $1.4B is perhaps 5% of its peak, when Mr. Berkowitz won Morningstar’s Fund Manager of the Decade in 2010.

MFO Ratings Updated Through May 2019

All fund risk and return metrics, ratings, and analytics have been uploaded, reflecting performance through May 2019.

Some highlights:

  • all 11 sector ETFs retracted in May, most between 7 and 11%, but gains remain strong year-to-date … all positive, most between 7 and 16%
  • 7 of 17 Timothy Plan funds on MFO’s Three Alarm list
  • Dreyfus fund family rebranded to BNY Mellon
  • added 4-year evaluation period to MultiSearch (thank you David)
  • Lipper added several new fund categories, including Emerging Markets Mixed Asset, Frontier Markets, Global High Yield, Short High Yield, Absolute Return Bond, and Real Return … see Definitions/Categories

As always, if you see anything amiss or have suggestions for improvement, let us know and we will respond soonest.

Please enjoy the latest data.

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AQR Fund Family Performance Sagging

Latest MFO Fund Family Scorecard gives AQR a “Lower” grade. Of AQR’s 39 funds, 26 trail their peers since launch through April 2019 based on absolute return.

Fortunately, most of AQR’s AUM is in just five funds: Managed Futures Strategy (AQMIX), Style Premia Alternative (QSPIX), Large Cap Defensive Style (AUEIX), Long-Short Equity (QLEIX) and Large Cap Multi-Style (QCELX), which have all bested their peers since launch.

But it’s been a tough past year for two of these: Style Premia Alternative (QSPIX) and Long-Short Equity (QLEIX), each down 13-14%, particularly since alternatives tend to target investors with more moderate risk tolerance.

Hussman Funds

Since inception Hussman funds have been one of great destroyers of capital in the mutual fund industry, except for the fees they generate, which are currently as high as 2% per year. And even still, they maintain an AUM of $600M. Can you believe that?