New No-load Fund

[mlk_man]

imported post

One secret to beating the market with no-load funds is to buy shares in new funds from superior, experienced managers. Because the funds have just been launched, they have fewer assets and thus are easier to run -- and the managers can fill them with their favorite stocks instead of diversifying into increasing numbers of stocks that they like less.
Investors now have a wonderful opportunity to buy shares in Vanguard PRIMECAP Core Fund (VPCCX), which Vanguard launched in December 2004. The fund's managers also run the Vanguard PRIMECAP and Vanguard Capital Opportunity funds, which are superior offerings that are closed to new investors. Like those of its siblings, the assets of PRIMECAP Core are divided among up to five portfolio managers at the same firm, who work independently, along with a group of stock analysts. However, each of the managers has the same investment philosophy: Buy stocks that have excellent long-term growth potential and are currently out of favor, and hold them. Over the long run, this strategy has produced excellent results.

Net asset value: $10.16, as of March 31, 2005. Minimum initial investment: $10,000.

 

[coolhand]

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Thanks Mlk...I really like Vanguard andwill consider investing in that particular fund.

My Windsor II fund is up over 32% since 2001. Did well with two of their bond funds too, GNMA and HY Corp.

 

[Birchtree]

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The tape feels like hedge fund panic selling in the commodity stocks. We still have an hour left-but who knows what will happen. My contrarian adrenalin is flowing so I sold a profitable supermarket stock for a $5000 profit. Took the funds and bought a steel stock I already own as well as a chemical stock for the dividend. No cut and run here, this could be a bear head fake with one last retest. Just don't turn on the lights. Dennis

 

[Birchtree]

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Most people don't realize that oil companies can make money at $35 oil and even lower. Drillers we keep on drilling, pipelines will keep on moving product, metal companies will keep on digging, steel will continue to be needed in many markets. Take the long term perspective and ignore these bearish sentiments that are rising up. They will eventually wash away. The Fed will pause and when that happens the majority of the coming up leg will already have transpired. The bears will be left looking up-wondering what happened. Patience is virtuous.

 

[mlk_man]

imported post

Not a new fund, but another option

M_M



Succeeding in Risky Sectors

Janet Brown
No-Load FundX


[align=left] s comforting as it may be to read end-of-the-year predictions, the simple fact remains that no one can reliably or accurately predict the stock market or know for sure what mutual fund or stock will be the best performer in 2006. Luckily, our firm's Upgrading strategy doesn't rely on predictions. Instead, it is based on performance.[/align]
Upgrading means that we invest in the funds that we believe are currently leading the market and stay with them only as long as they are performing well. We may buy a fund this month, but if market leadership shifts, we might very well sell that fund before the end of the year.

Our FundX Upgrader funds -- which as "funds-of-funds" invest in other mutual funds -- give investors a simple way to access the Upgrading strategy used in our NoLoad FundX newsletter. The most aggressive of these is the FundX Aggressive Upgrader Fund (HOTFX).

HOTFX invests in our firm's top equity mutual fund picks regardless of risk. Upgrading means that one is not limited to a particular investment approach. This flexibility allows us to move dynamically to benefit from the rotation of market sectors and styles, whether it is in small-cap growth, mid-cap value or internationals. With HOTFX, this can include owning bear market funds and/or sector- or country-specific funds.

HOTFX has an underlying portfolio of 25 to 35 funds that collectively represent more than 1,000 individual stocks. This portfolio has a higher allocation to more speculative funds, such as sector funds or funds concentrated in emerging markets, and it is designed for investors who are willing to take on above-average risk in the hope of achieving higher returns over time.

Performance: Since inception July 2002, HOTFX has returned 64.6% through October 31, 2005, versus 34.36% for the S&P 500 Index.

Market leadership in 2005 has been focused in relatively few areas: energy and natural resources, utilities and mid-cap funds -- all of which are represented in HOTFX's underlying portfolio.

As of September 30, 2005, HOTFX had more than 5% invested in BlackRock Global Natural Resources Fund (SSGRX), 4.3% in iShares Latin American Fund (ILF), 3.9% in ICON Energy Fund (ICENX), and 4.3% in Excelsior Emerging Markets Fund (UMEMX).

When it comes to market leadership, the only constant is change, and one of the hallmarks of this fund is its flexibility to follow market trends. Recently, HOTFX increased positions in emerging markets, especially Asia and Latin America. These leading areas benefit from increased demand for raw materials, most notably, oil and precious minerals.

Note: Performance data quoted represents past performance... past performance does not guarantee future results. Please refer to the prospectus for further details.

 

[vethost.com]

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The whole trick is to compare investment vehicles. Janet's fund has done very well and may hold up well in a vicious down market, but those are things we don't know. What I do know is that the mutual fund I selected for my IRA, CGMFX, has exceeded the returns of HOTFX, while maintaining an expense ratio less than half:

HOTFX Expense Ratio 2.92%
2003 41.8 2004 10.7 YTD 13.5

CGMFX Expense Ratio 1.12
2003 66.5 2004 12.3 YTD 22.9

Of course better past performance does not guarantee better returns in the future.

I wonder how funds highly rated by that newsletter fared with very little timing and no HOTFX overhead?