When I started my newest tranche on Tuesday, I decided not to roll over my CSCO position as it had become the largest holding in my portfolio. Long term will tell whether that was a good or bad decisions - but they are down 3% this morning on their earnings (released last night).
While I am relieved I did not renew, it is still my 4th largest holding. So I will feel some pain.
I think I mentioned with my retirement I have been divesting the stock of my former employer. So I have more cash than usual. I did kick around today to buy GARIX. This is the Gotham Total Return mutual fund run by Greenblatt himself. It is a long/short fund, which appeals to me as a bit of a safety net in today's world of seemingly inflated asset prices.
This year GARIX is up 3.24%, consistent with my view of MFI struggling (What's Going On?). GARIX has been around since September 2012 (ironically the same time I started my MFI reboot). It gets just 2 stars from Morningstar, which says volumes about the struggle of Magic Formula Investing. It also has the issue of a 3.09% expense load - pretty healthy for something formula-driven.
But all that being said, it is like a hedge fund and they have all been struggling of late. And it does stand to reason that in a correction, GARIX would outperform.
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