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Mutual Fund Recommendations for 401K


rpadebet

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I have some cash sitting in my 401K which allows me to only invest in Mutual funds. I can invest in pretty much any mutual fund  through the brokerage account option my 401K allows. Over the years I have accumulated some pretty good funds but I am looking for some good recommendations by the community.

 

I am currently invested in

FAIRX

FOCIX

MXXVX

LEXCX

TBCUX

FPACX

WEMMX

FARNX

 

I am looking for Equity funds only (no interest in bond funds in my 401K unless they are special/distressed situations like FOCIX). Prefer focused mutual funds to diversified funds. Prefer a go anywhere approach rather than sector based or size based. I don't mind volatility at all, as I am just planning to buy and sit, but would insist on the manager having a value bent.

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I would add RWGFX to that list.  Long and short is that they are value oriented, typically hold around 20 stocks and have beat the S&P 500

 

This will give you some background:

http://www.wedgewoodpartners.com/investor-resources/firm-presentation

 

 

Rolfe is a decent manager but I have my doubts about his fund. If a guy is managing over a billion, is a "core" type fund and has less than $1,000,000 of his own money in it...I'd be wary. He probably would hold up fairly well in a down market though. I'd say if you're looking to more or less match the S&P 500 with less volatility, this is a decent choice. However, rpad said he doesn't care about volatility.

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Just a thought, but maybe it might be better to focus on a few funds that you already have and have confidence in. If you invest in a dozen funds, then your performance would pretty much track the broad market.

 

Vinod

 

Fair point. But there is always a chance that there are better managers and better funds than I already have. :)

 

 

btw anyone know of a fund heavily invested in BRK, FFH or MKL? (>30% weight)

 

 

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I would add RWGFX to that list.  Long and short is that they are value oriented, typically hold around 20 stocks and have beat the S&P 500

 

This will give you some background:

http://www.wedgewoodpartners.com/investor-resources/firm-presentation

 

 

Rolfe is a decent manager but I have my doubts about his fund. If a guy is managing over a billion, is a "core" type fund and has less than $1,000,000 of his own money in it...I'd be wary. He probably would hold up fairly well in a down market though. I'd say if you're looking to more or less match the S&P 500 with less volatility, this is a decent choice. However, rpad said he doesn't care about volatility.

 

Stahl,

I don't own any RWGFX, but two quick things--where did you get information regarding how much of Rolfe's own money is in the fund?  Additionally, you say "more or less match the S&P 500" however if you review the link he has clearly outperformed the S&P 500 over longer time horizons unless my data is invalid.

 

Thanks,

 

David

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I would add RWGFX to that list.  Long and short is that they are value oriented, typically hold around 20 stocks and have beat the S&P 500

 

This will give you some background:

http://www.wedgewoodpartners.com/investor-resources/firm-presentation

 

 

Rolfe is a decent manager but I have my doubts about his fund. If a guy is managing over a billion, is a "core" type fund and has less than $1,000,000 of his own money in it...I'd be wary. He probably would hold up fairly well in a down market though. I'd say if you're looking to more or less match the S&P 500 with less volatility, this is a decent choice. However, rpad said he doesn't care about volatility.

 

Stahl,

I don't own any RWGFX, but two quick things--where did you get information regarding how much of Rolfe's own money is in the fund?  Additionally, you say "more or less match the S&P 500" however if you review the link he has clearly outperformed the S&P 500 over longer time horizons unless my data is invalid.

 

Thanks,

 

David

 

Ownership is in the SAI.

 

According to morningstar, the retail class has underperformed (barely) since inception against the S&P 500. However, the drawdowns are less severe.

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I would add RWGFX to that list.  Long and short is that they are value oriented, typically hold around 20 stocks and have beat the S&P 500

 

This will give you some background:

http://www.wedgewoodpartners.com/investor-resources/firm-presentation

 

 

Rolfe is a decent manager but I have my doubts about his fund. If a guy is managing over a billion, is a "core" type fund and has less than $1,000,000 of his own money in it...I'd be wary. He probably would hold up fairly well in a down market though. I'd say if you're looking to more or less match the S&P 500 with less volatility, this is a decent choice. However, rpad said he doesn't care about volatility.

 

Stahl,

I don't own any RWGFX, but two quick things--where did you get information regarding how much of Rolfe's own money is in the fund?  Additionally, you say "more or less match the S&P 500" however if you review the link he has clearly outperformed the S&P 500 over longer time horizons unless my data is invalid.

 

Thanks,

 

David

 

Ownership is in the SAI.

 

According to morningstar, the retail class has underperformed (barely) since inception against the S&P 500. However, the drawdowns are less severe.

 

Thanks for the tidbit regarding ownership.  In terms of the performance--the numbers in the firm presentation paint a much different picture showing out-performance of about 3% per annum depending on the time frame chosen.

 

 

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Seems like most of the managers I follow are in the hedge fund space, so my experience with mutual funds is limited.  With that being said, I'd suggest looking at the Gotham funds.  It's managed more like a long/short value-oriented HF, and Greenblatt has one of the strongest track records / reputations out there.

 

It really is a challenging question because by the time a MF manager is widely identified as having talent, the scale of their AUM tends to dilute their alpha.

 

Greenblatt Interview on WealthTrack

 

- vertek

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If you don't mind going with a younger fund, you might want to look into the Yacktman Special Opportunities Fund.  It's run by Adam Sues, who used to run the blog Value Uncovered.  If you dig through the funds holdings, a lot of them appear to be easy doubles:

 

http://portfolios.morningstar.com/fund/holdings?t=YASLX&region=usa&culture=en-US

 

I don't know how well his current strategy will scale, but as long as easy doubles (or more) are available through the fund, you might as well take advantage of it.

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Seems like most of the managers I follow are in the hedge fund space, so my experience with mutual funds is limited.  With that being said, I'd suggest looking at the Gotham funds.  It's managed more like a long/short value-oriented HF, and Greenblatt has one of the strongest track records / reputations out there.

 

It really is a challenging question because by the time a MF manager is widely identified as having talent, the scale of their AUM tends to dilute their alpha.

 

Greenblatt Interview on WealthTrack

 

 

- vertek

 

I like and own GENIX from Gotham. His problem will be the $250K minimum that is now required. Was much lower 2 years ago.

 

For the "go anywhere" label - FPACX is a good choice - Romick is conservative and will do equities, bonds, land, where ever he thinks

he'll get an equity-like return from any asset class.

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If you don't mind going with a younger fund, you might want to look into the Yacktman Special Opportunities Fund.  It's run by Adam Sues, who used to run the blog Value Uncovered.  If you dig through the funds holdings, a lot of them appear to be easy doubles:

 

http://portfolios.morningstar.com/fund/holdings?t=YASLX&region=usa&culture=en-US

 

I don't know how well his current strategy will scale, but as long as easy doubles (or more) are available through the fund, you might as well take advantage of it.

 

Is Sues's fund available for purchase?

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If you don't mind going with a younger fund, you might want to look into the Yacktman Special Opportunities Fund.  It's run by Adam Sues, who used to run the blog Value Uncovered.  If you dig through the funds holdings, a lot of them appear to be easy doubles:

 

http://portfolios.morningstar.com/fund/holdings?t=YASLX&region=usa&culture=en-US

 

I don't know how well his current strategy will scale, but as long as easy doubles (or more) are available through the fund, you might as well take advantage of it.

 

Is Sues's fund available for purchase?

 

Probably?  Maybe?  I didn't even think to check.

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  • 4 weeks later...

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