There are 1,342 actively managed funds the Wall Street Journal tracks. Of those, exactly 32 have managed not to get crushed by the bear market. The average loss: 17.2%. Who did the best?
So, how did the handful of fund managers tracked by the Journal’s Winners’ Circle quarterly survey manage to post gains in this market? The No. 1 finisher, and the only fund with a double-digit gain, was Federated Hermes Strategic Value Dividend Fund (SVAIX), whose manager, Daniel Peris, ended the second quarter of 2022 in positive territory for both the rolling 12-month period—a gain of 11.8%—and the first six months of the year, at 4.9%. He took a different approach to outperformance than many of the winners of the competition in past quarters have done.
“We’re not trying to buy low and sell high,” says Mr. Peris, voicing a philosophy that he acknowledges is at odds with many if not most of his peers. Instead, his strategy as a fund manager is to view what he does as buying and owning businesses, as a shareholder. More specifically, he wants to own stakes in businesses that pay out hefty dividends, have a record of raising those dividends regularly and have the ability to continue doing so. https://www.wsj.com/articles/mutual-funds-managers-positive-…
More specifically, he wants to own stakes in businesses that pay out hefty dividends, have a record of raising those dividends regularly and have the ability to continue doing so.
Cool, but I see he’s underperformed the S&P 500 for 3, 5, and 10 years. The fund is heavy into things like CVX and XOM (also healthcare, tobacco, utilities), so it’s not too surprising that it outperforms in the current environment but not over the longer haul.
As for me, I’d rather own GOOG, MSFT, AAPL, V, MA, AMZN, etc. And so I do.
“We’re not trying to buy low and sell high,” says Mr. Peris, voicing a philosophy that he acknowledges is at odds with many if not most of his peers. Instead, his strategy as a fund manager is to view what he does as buying and owning businesses, as a shareholder. More specifically, he wants to own stakes in businesses that pay out hefty dividends, have a record of raising those dividends regularly and have the ability to continue doing so.
Kind of sounds like what Warren Buffett has been doing for the past 50 years or so.
Thank you for recommending this post to our Best of feature.
A broken clock is right twice a day!
Only 12 hour analog clocks.
The Captain
Yeah, my new “Smart Watch” gets the time from my cell phone and is never wrong as long as the Bluetooth is connected. The STEPS COUNT is a whole 'nother story. The App keeps telling me I don’t get enough sleep to be healthy but doesn’t count my solid afternoon naps. }};-D