Poor Man's Hedge Fund

[OracleofCarolina]

That is how a friend of mine described IVA Worldwide Fund, I know we don't usually talk about mutual funds here but I am intrigued by this fund.

 

Essentially, we have about 13 people who left First Eagle Funds working here.  The funds just started up last year and they eat their own cooking.

Very eclectic portfolio of bonds, stocks, gold, oil. They are having a conference call on 3/25 to discuss the funds.

 

http://www.ivafunds.com/attachments/products/IVA_Worldwide_Port_Comp_Feb_2009.pdf

 

 

 

[Carvel46]

FYI, it's a load fund... I was considering it for Japanese small value exposure until I noticed the hefty fees. Tough pill to swallow... plus I saw them "discussing" AUM capacity in the $10 bil + range (if I remember correctly) in their conference call last November. Why are they throwing AUM targets around only a year after they've opened up shop... how about some focus on performance? I will say that they do seem disciplined investment-wise.

[OracleofCarolina]

I agree, the load is a big turnoff...however if you are a registered representative then they will waive tge load.

 

Fortunately for me, that is the case

[OracleofCarolina]

BTW, I think they were discussing the 10 billion threshold to let interested investors know they will close the funds.

 

I appreciate their candor and I don't think they are  "money grubbing" .

 

I will be listening to their conference call tomorrow.

[Carvel46]

Good point on registered representatives. Thanks!

 

I came off a bit negative... I liked much of what I heard on the Nov call.

- focus on absolute returns

- willingness to hold cash

- push into high yields and convertibles, they'll go anywhere (no benchmark hugging here)

- global perspective (I loved their candor on the macro picture the US consumer faces and the headwinds it creates for US equities--comment was before US stimulus bill and EU dragging their feet on the fiscal side)

 

Overall they seem very disciplined and have their own money invested... as you mentioned.

 

I look forward to any comments you have from the call... Cheers!

 

[OracleofCarolina]

I would urge you to listen to the conference call replay, it should be up on IVA's web site in the next couple of days,

Charles and Chuck answered any question for about an hour. Everything from gold, Pfizer, inflation outlook, high yield bonds, selling puts, and Buffett and Munger quotes was discussed.

 

Both of these guys are young(40's, late 30's ?) but show lots of wisdom, I could see them being on Buffett's short list for successors, in fact I use to joke when Charles disappeared last year that he was in Omaha studying with Buffett.

 

They hate to lose money and always are looking at the downside risk and since I can invest without paying a load and feel comfortable placing some funds with them in case I blow up my other funds  : )