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Re: Asset Allocation Percentages
Old 12-08-2005, 04:32 PM   #21
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Re: Asset Allocation Percentages

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Originally Posted by ESRBob

An ER friend of mine,* former wall street highflier, said:* I don't want to own things that I can buy and sell with a click of my mouse.* And I certainly don't want to pay somebody else a fee for managing things that can be bought and sold with the click of a mouse.*

He has helped steer me into a few things like royalty trusts (haven't bought there, yet) and a hedge fund that provides capital to banks who are putting together 'conduits' to create asset-backed securities.* Things like that have risks so different from anything in the broad markets that I like to own them just for their diversification, and the fact that (in the latter case) it is throwing off a steady 20% a year doesn't hurt either.* That one's closed to new investors, but things like it are out there if you start looking.*

I think an ER who is only ever asking for 4-5% a year cash out of a portfolio can better afford illiquid investments than the average investor, and can capitalize on that with a little independent thinking.




I like my wonky partnerships for yield and absolute return. The other illiquid asset I really like is start-up community banks. They usually go through a few rounds of capital raising as they grow, but most of them sell out after 5 to 10 years and returns are generally excellent (20+% a year), but you have to be patient.
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Re: Asset Allocation Percentages
Old 12-09-2005, 09:52 AM   #22
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Re: Asset Allocation Percentages

What is a wonky partnership?

Know a big real estate investor, apartment buildings and warehouses, he just started a private bank...think he's going that route before long....suspect he has only his own and friendly investors private monies in the bank...likely to finance the sale of his real estate when he diversifies?... unclear as to timing of getting public money, either as debt or equity, into his bank

He's too shrewd for me to get involved with...
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Re: Asset Allocation Percentages
Old 12-09-2005, 09:46 PM   #23
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Re: Asset Allocation Percentages

Quote:
Originally Posted by brewer12345
I like my wonky partnerships for yield and absolute return. The other illiquid asset I really like is start-up community banks. They usually go through a few rounds of capital raising as they grow, but most of them sell out after 5 to 10 years and returns are generally excellent (20+% a year), but you have to be patient.
Brewer,
Nice -- that is the sort of thing I think we long term investors and ERs should be looking into -- it takes time and braincycles to figure out, and there is obviously illiquidity and some different types of risk there, but it is that very differentness that I think serves us well in the portfolio -- and you won't hear about this stuff in the mainstream press or fund company ads. The local banks that grow up and sell to the big boys have been pretty consistent performers, I understand, but have never invested in any myself.
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Xray
Old 12-11-2005, 01:26 PM   #24
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Xray

Went briefly to the Morningstar Xray site. I didn't enter everything, just one fund, PFIOX, that I ended up with after Safeco merged with Pioneer...

Now I'm more confused than before.

Morningstar shows PFIOX as having 48% cash.* I thought I was invested in the market rather than holding cash!

Yahoo! Finance says .04% cash, not 48%...

This number is not furnished on the Pioneer site, but I'm about to sit down with a calculator and tally up the figures given for their holdings list (cash not listed) and see how that compares to the total of holdings.


Has anyone else seen odd discrepancies of this kind? Who to trust without crunching all the numbers yourself?

---
ok back editing this post to report the sum total of all the different share classes does add up, just about, to the bulk of all holdings. 99.-something%. So why would Morningstar report otherwise
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Re: Xray
Old 12-11-2005, 02:15 PM   #25
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Re: Xray

Quote:
Originally Posted by ladelfina
Has anyone else seen odd discrepancies of this kind?
Tons. M* has lots of bad data, both online and in print edition.

Quote:
Who to trust without crunching all the numbers yourself?
I place more trust in original sources. If you can't find summarized data on the fund website, there might be some in the annual or quarterly reports, which you can get from the SEC Edgar website.

I still use M*'s data to make decisions, but take with a big grain of salt, and try to instead use data from index providers or etf/index fund providers, including Vanguard and ishares.
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