I've spent some time deciding on this portfolio which is still under construction. Just want your opinion on it. As a reference, I am 30 years old. The funds you'll see bellow add to 100% of the total I decided to allocate to stocks. My emergency cash fund and bonds are separate from this.

Large Cap Value:    CCEVX - Touchstone Value Opp        8.2%

Large Cap Blend:    EXEYX - Manning & Napier Equity     10%

Large Cap Growth:  MXXIX - Marsico 21st Century            10%

Mid Cap Value:      JMCVX  - Janus Mid Cap Value          10%

Mid Cap Growth:    BRAIX - Bridgeway Aggressive II         8%

Small Cap Value:   RYVFX - Royce Value Service            8.5%

Go-Anywhere:        CGMFX - CGM Focus                        12%

                             FAIRX  - Fairholme                            13%

                             JSVAX - Janus Contrarian                  10%

International:          DODFX - Dodge & Cox International     10%

Please, feel free to critique my portfolio since I am open to suggestions. One thing I am thinking is to replace DODFX by EXWAX (from Manning and Napier), given the size of DODFX and that I already have a direct account with Manning and Napier. Also because EXWAX invest in companies of all sizes, which would give me better diversification without adding another fund.

 By the way, another thing I'd like is not to hold more than 10 funds.

 Thanks in advance.

JC
 

 

 

Hi JC:

First, let me say that I am far from any type of expert. The following are just my personal opinions.

Without looking into your choice funds, it appears you have only 10% in international stocks.  I'm sure at least some of the other funds have some international stocks in them also.  I suggest about 20% to 25% international stocks.

I like your idea of  holding no more than 10 funds.

I will make one suggestion.  Look at the T. Rowe Price Spectrum Growth Fund, PRSGX.  It is a fund of funds and, as the name suggest, it covers the spectrum of equities.  It consist of 9 TRP equity funds.

By using prsgx you can let the experts allocate and rebalance and you can enjoy your life.  I can almost promise you that with a large portfolio of funds, from as many investment companies, you will always be comparing, worrying and changing funds.  And the sad part is that all of the work will likely make little difference in your return.

You might want to also look at the TRP Spectrum Income Fund, PRSIX, for your bond portfolio.

Keep investing simple and enjoy your life.

Best of luck to you.

hondo

I would prefer HIINX over DODFX.  I'd also try to find a place for JORNX.  You've run an X-ray  (I'm too lazy to do that at the moment)?  What are your breakdowns?  It looks to me as if your foreign exposure is kind of low.

This would be the breakdown after running the x-ray:

Asset Class % Cash 6.80 U.S. Stock 68.38 Foreign Stock 24.35 Bond 0.22 Other 0.25 Not Classified NaN		Stock Style % Large Value 15.13 Large Core 18.75 Large Growth 29.89 Mid-Cap Value 7.72 Mid-Cap Core 11.28 Mid-Cap Growth 8.09 Small Value 2.13 Small Core 4.28 Small Growth 2.74 Not Classified 0.00
Stock Sector Portfolio % S&P 500 Information Economy 13.51 20.87 Software 1.37 4.14 Hardware 5.41 10.20 Media 4.14 2.90 Telecommunication 2.59 3.63 Service Economy 41.11 40.62 Healthcare Services 8.34 11.98 Consumer Services 8.46 6.84 Business Services 6.61 4.37 Financial Services 17.69 17.43 Manufacturing Economy 45.38 38.51 Consumer Goods 6.54 9.10 Industrial Materials 21.41 12.93 Energy 15.12 12.94 Utilities 2.31 3.54 Not Classified 0.00 0.00		Stock Type Portfolio % S&P 500 High Yield 4.50 9.51 Distressed 1.54 0.58 Hard Assets 15.29 14.00 Cyclical 21.21 18.80 Slow Growth 7.61 8.10 Classic Growth 21.78 32.69 Aggressive Growth 21.14 14.11 Speculative Growth 5.58 2.17 Not Classified 1.37 0.04
Fees & Expenses % Average Mutual Fund Expense Ratio (%) 1.07 Expense Ratio of Similarly Weighted Hypothetical Portfolio (%) 1.31 Estimated Mutual Fund Expenses ($) 329.31 Total Sales Charges Paid ($) 0.00		World Regions % North America 79.52 UK/Western Europe 8.25 Japan 2.66 Latin America 4.03 Asia ex-Japan 3.45 Other 2.08 Not Classified 0.00
Stock Stats Average for This Portfolio Relative to S&P 500 (1.00=S&P) Price/Earnings Forward 15.15 1.05 Price/Book Ratio 1.98 0.82 Return on Asset (ROA) 7.53 0.88 Return on Equity (ROE) 20.00 0.90 Project Earnings Growth-5 Yr (%) 13.96 1.25 Yield (%) 1.03 0.52 Avg Market Capitalization ($ mil) 16,990.58 0.30		Bond Style % High-Quality Short-Term 0.00 High-Quality Intermed-Term 0.00 High-Quality Long-Term 0.00 Medium-Quality Short-Term 0.00 Medium-Quality Intermed-Term 0.00 Medium-Quality Long-Term 0.00 Low-Quality Short-Term 0.00 Low-Quality Intermed-Term 0.00 Low-Quality Long-Term 0.00 Not Classified 100.00

 Thanks,

 

JC 

I'd shift more assets to foreign; long-term, that's where the growth will be (imo).  HIINX instead of DODFX (again imo) and maybe add a more growth oriented foreign fund (which will mean more emerging markets exposure and more risk). I use JAOSX for this, but it's closed to new investors.  Not sure what to recommend to you.  FAIRX and CGMFX (and a lot of other funds) are energy heavy; do you need both?  FAIRX is safer, CGMFX has better potential for gains, but also greater potential for losses.  Imo, JORNX over JSVAX.  You're young enough to support a risky portfolio, just be aware that in a downturn you could see 30% losses (or worse, heaven forbid).  That's ok if you have funds that also rebound well, and better to have it happen sooner (with less assets) than 20 years from now.  Just a good idea to expect it to happen at some point(s).  Good luck!

Add my vote to those who suggest more foreign funds.

I like PORTX for small-caps, and LZOEX for (relatively conservative) emerging markets.

You might as well dive into the BRIC realm, too; I have both MINDX and EUROX, but I use ETFs for Brazil and China--that's another thread, in another forum!

aalan 

It seems to be a general agreement that I should increment my international exposure...which I will consider.

Now, Racqueteer, you mentioned that you prefer HIINX, but later also mentioned that you were concerned that FAIRX and CGMFX are heavily invested in energy...I did consider HIINX but decided not to buy it precisely because I was concern I had enough energy exposure, and that holding will only increment it...I find that fund not diversified enough with no exposure in tech, for instance. That's why I was thinking on EXWAX, more diversified, more stable and with a family that has great bear market record.

I am also considering to add maybe an emerging market fund, but I am afraid the long run might stall soon...what do you think?

I also considered Janus Orion before, but rather wait for a while to see if the new manager really fill the shoes of the previous manager...meanwhile I feel BRAIX is in a similar category. JSVAX on the other hand is a complete other fund imo...and is giving me exposure to the already deficient international exposure I have.

I hope I never see a 30% loss in my portfolio! In any case, I feel I have some funds that can rebound quick as you mentioned, and I always maintain some "investment cash" on the sidelines in order to buy during bad times...For instance, I've been buying relatively heavy since late January, and that has helped me to be beating the S&P by 7.2% already this year...well, that and the energy and industrial exposure :)

It's obvious though that I have to work on the international side of the equation...I've heard now some options, but what do you think would be a nice combination of international funds?

Thanks,

 JC
 

 

Looking carefully at the stock intersection feature I noticed now that two of the funds on my list overlap a lot...actually, the charts are almost identical. I am talking about JCMVX and CCEVX. I guess the reason is that CCEVX used to invest in the mid cap category and is shifting toward the large value space.

Since, they have a bunch of stocks in common now I decided not to buy CCEVX (I already own JCMVX), and buy instead an international fund to fill that gap. Decided as well not to dump DODFX and will buy that international fund to go along with it...till now I am inclined to buy EXWAX as mentioned...

Many of you insist on the international exposure, which with the modifications mentioned and some corrections will jump to 35%...I am not inclined to buy a pure emerging market fund, since I really feel the run might be close to an end...and checking at the x-ray, latin america and asia (ex-japan) represent already 9% of my holdings, without actually having an emerging market fund.

Any more suggestions I can use? please, any advice is welcome.

Thanks,

JC

 

 

Hi,

At age 61, I am a late beginner to the world of investing. However, I have been very impressed with the Asset Allocation work written by Roger Gibson. His asset groupings include equities and fixed income but more importantly include Real Estate & Commodities.  

In constructing my portfolio for retirement my core equity include FAIRX (Fariholme), CGMFX (CGM Focus) and DODFX (Dodge & Cox International). A note on the international holdings, both CGMFX and FAIRX have considerable emerging market stakes.  You may have the Real Estate & Commodity classes covered in your other holdings, but if you do not, you could consider the following: 

For the 'Real Estate' asset group, I have a position in PIMCO Real Estate Real Return Strategy (PETDX). You might also consider REITs or other mutual funds but I would check the actual portfolios.  For example, CGM Reality gets out of the Real Estate world on a regular basis.

For 'Commodites', I hold "ishares S&P CSGI Commodity Indexed Trust" which is an ETF (GSC).  I also hold PIMCO Commodity Real Return Strategy (PCRDX).

Because these are new investment classes for me, I am keeping the portfolio slice fairly small for now, between 5%-10% for Commodities & less for Real Estate.

At some point, you might also consider a small state in fixed income just to moderate the volatility risk for the portfolio as a whole.

ebstroker 

 

 

I will certainly consider a "real estate" fund for my portfolio in a near future, but first I want to finish the basic skeleton of my portfolio and fill major asset class gaps.

So my main debates right now are in two classes: International and Small Caps.

As mentioned at the beginning of this post RYVFX was selected to cover the small cap realm...however, I have been trigger shy given the exposure to industrials and energy of the fund...I feel that having CGMFX, FAIRX, JSVAX and BRAIX I have more than enough exposure at this moment to those sectors, so I am afraid of incrementing the exposure by buying that fund. However, I cannot find another small cap fund that would satisfy my criteria. The closest one would be BRSVX, but that one is in a similar position than RYVFX in regards to exposure...Any ideas here?

 In regards to international I decided to complement DODFX with EXWAX and a small position in UMBDX (UMB Scout International Discovery), which is a new fund but I've always liked the job of the manager (at UMBWX). This fund will give me exposure to small-mid cap international stocks. What do you think?

Thanks again!

JC
 

Look at NMYAX. Same fund as MXXIX with out the 12B-1 fee of .25%.Same company,less expense. Same manager.

Regards Ron