Author Topic: Oceanstone?  (Read 2811 times)

jpluncford21

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Oceanstone?
« on: January 30, 2013, 07:31:09 AM »
I've read the reviews about this fund and how the manager's investment strategy makes no sense, but man this fund is just interesting to me! It is always in the back of my mind and I keep leaning closer and closer to buying in. I'm absolutely sure this post is going to get torn apart, but what do you guys think? Anyone else ever look at this fund?

Karl

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Re: Oceanstone?
« Reply #1 on: January 30, 2013, 09:30:58 AM »
I took a brief look at the  fund on Morningstar.  It looks incredibly risky/volatile, has a huge fee,  and appears to have made its money in a very brief period of time (look at the graph for five year performance).  I like to sleep at night, so I would avoid this fund for all of these reasons.

Also, the fund manager refuses to talk about his strategy.For this type of fund, you invest in the manager more than anything else.  Since he will not communicate openly (see Kiplinger article) with people who might be able to effectively judge the fund and/or the fund manager, this worries me substantially.

I realize that investing in stocks requires some risk.  In my opinion, however, investing without substantial knowledge of the fund and fund manager reflects gambling.  I gamble for skittles (poker is my preferred game); that way, I can eat my stake and feel better if I find myself losing.

$.02

jpluncford21

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Re: Oceanstone?
« Reply #2 on: January 30, 2013, 11:30:01 AM »
Yea the fact that the fund manager is a bit  of a recluse is a huge turn off. That and, like you said, the fees are enormous! I've read a good bit of articles on this fund, and no one really trusts the manager. But, he has performed pretty well year after year since it's inception. I will more than likely stay away, but I always like to think that I'm a sucker for the bet big win big scenarios

Jamesqf

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Re: Oceanstone?
« Reply #3 on: January 30, 2013, 11:51:25 AM »
Also, the fund manager refuses to talk about his strategy.For this type of fund, you invest in the manager more than anything else.  Since he will not communicate openly (see Kiplinger article) with people who might be able to effectively judge the fund and/or the fund manager, this worries me substantially.

Yeah, I remember another fund manager that got great returns, and refused to talk about his investment strategy.  Guy by the name of Madoff :-)

KingCoin

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Re: Oceanstone?
« Reply #4 on: January 30, 2013, 01:24:30 PM »
Short history, only $32mm AUM, most of the outperformance came in 2009, and he's been more or less tracking the market since. Not sure that there's much magic here.

It's worth noting that the fund is currently 74% cash, so the management fee is close to 7% on invested assets. You're basically betting on this guy's ability as a market timer, but I don't think the history is there to justify the expense ratio.