The article “All in the Family” by Barron’s ranks mutual fund families across several asset classes and time periods. A stellar 2012 for the DFA Value Portfolio helped it earn first place for the US equity fund category. Its three year performance was also very respectable. DFA took 16th place overall for 2012 and 33rd for five-year performance. This article substantiates our use of DFA in client portfolios. The funds served clients well in the short term, but more importantly for the long term. Investing is, after all, a marathon, not a sprint.
A few weeks ago, four Merriman advisors got together for a round table conversation to review themes that came up during meetings with their clients. Aaron Spencer, Mark Metcalf, Paresh Kamdar and Tyler Bartlett all provided insights on the most common questions that investors are asking. Over the 40 minute conversation, you’ll hear their take on the following themes:
- International exposure
- Bond rates being at an all-time low
- DFA and the value they add
Little known by most, behind the scenes at Merriman we manage a small hedge fund for many of our accredited clients. This fund, the Leveraged Global Opportunity Fund L.P., is now in its 17th year. During this time we’ve received various honors, and last week our fund made the finalist list for the 2011 HFMWeek U.S. Performance Awards for the Macro Under $1 Billion category. Winners will be announced at an event in New York on October 13th. More information is available on their website HFMWeek.com.
There was an interesting article in the Wall Street Journal from March 8, 2011 called “Why Small-Cap Funds are Lagging.” It cites a study by Credit Suisse showing that “small-cap funds have increasingly been investing in companies larger than their category name would indicate—and the average fund is underperforming its benchmark.”
The article goes on to say “The average market capitalization of a company in a small-cap fund was about $3.1 billion at the end of 2010, compared to the average market cap of the benchmark Russell 2000 index of about $1.3 billion. The $1.8 billion gap between the two is the largest since September 2008.” (more…)
Dimensional Fund Advisors (DFA) is the manager of all the equity mutual funds we recommend to our clients. In today’s issue of Barron’s, DFA was ranked the best for 2010 in a special report on “The Best Mutual Fund Families.” You can read the full article at Barron’s website, but here are some excerpts:
Dimensional Fund Advisors, whose quant[itative] funds operate almost like indexes, was in precisely the right markets and watched its pennies. (more…)