After holding the Acorn fund for many years Bye Bye

[ejman]

Well, after having the Acorn fund as a substantial part of my small/medium cap holdings for many years of good performance I finally decided it's time to let go. I'm considering going small cap index instead. Thoughts?

[steelyman]

If it's important, cut the cord and don't look back (assuming it's not your spouse).

I hold Acorn and will continue. I sell in increments when I notice it has gone up (I don't do the SWR thing).

[NW-Bound]

I have heard or read of the fund name, but never own it. So, out of curiosity I look it up, and do not know which is "the" Acorn fund.

[steelyman]

Quote:

Originally Posted by NW-Bound I have heard or read of the fund name, but never own it. So, out of curiosity I look it up, and do not know which is "the" Acorn fund.

The one I am talking about is Columbia Acorn class Z (ACRNX). I think they were once "Liberty". They have different share classes (and loads). I couldn't get Z through normal ways (it's offered in our 457).

[ejman]

Quote:

Originally Posted by steelyman The one I am talking about is Columbia Acorn class Z (ACRNX). I think they were once "Liberty". They have different share classes (and loads). I couldn't get Z through normal ways (it's offered in our 457).

Yes, that's the one I've owned for many years with stellar performance. Alas, as most actively managed funds, it seems the magic disappears over time. In this particular case, the long time manager Ralph Wanger retired in 2003 and the people he trained stayed on for several more years (Chuck McQuaid )but then time marches on and mediocrity sets in.

[steelyman]

Quote:

Originally Posted by ejman Yes, that's the one I've owned for many years with stellar performance. Alas, as most actively managed funds, it seems the magic disappears over time. In this particular case, the long time manager Ralph Wanger retired in 2003 and the people he trained stayed on for several more years (Chuck McQuaid )but then time marches on and mediocrity sets in.

I think you are right.

I sell in little pieces, but I sell. There aren't many alternatives in our plan, but I'm not in a hurry.

I go for extended market index, and then another actively managed smaller cap.

[ejman]

One additional nugget I forgot to mention. I don't know if causality can be shown or not but the period of mediocrity seems to be roughly correlated in time with the purchase of this fund (among others run by Columbia Management) by Ameriprise Financial...

[brewer12345]

Quote:

Originally Posted by ejman One additional nugget I forgot to mention. I don't know if causality can be shown or not but the period of mediocrity seems to be roughly correlated in time with the purchase of this fund (among others run by Columbia Management) by Ameriprise Financial...

Ameriprise is best described by a phrase uttered by Tony Soprano: Like King Midas in reverse; everything they touch turns to sh!t...

[Animorph]

I've had my eye on IJK, an S&P Mid-Cap 400 index ETF. Though ACRNX looks like it has done much better over the long term.

For an active fund, I'm using OAKGX. They all match up pretty well over some time periods, so take your choice.

[ejman]

Quote:

Originally Posted by Animorph I've had my eye on IJK, an S&P Mid-Cap 400 index ETF. Though ACRNX looks like it has done much better over the long term. For an active fund, I'm using OAKGX. They all match up pretty well over some time periods, so take your choice.

Yes, ACRNX's long term performance is good because it truly was an extraordinary fund before things turned. The attached chart shows performance since 2009 vs the IJK ETF you mentioned. Thank you. https://www.google.com/finance?q=MUT...G8GIjAKWj4DADQ

[Likes_to_Lurk]

I held a position in this fund for many years, buying when Ralph Wanger was managing it. For most of that time, I was very happy with the performance.

Last October, I sold all shares as part of a portfolio makeover (finally ready to go index). I bought Vanguard's small cap fund, VSMAX. In hindsight, I probably should have pruned this sooner. Once a small cap fund gets larger, it cannot maintain the performance - its buying and selling affects the market in a given stock.

Also, an index fund will have a lower expense ratio. it's hard to beat that.

[Rustward]

Quote:

Originally Posted by ejman One additional nugget I forgot to mention. I don't know if causality can be shown or not but the period of mediocrity seems to be roughly correlated in time with the purchase of this fund (among others run by Columbia Management) by Ameriprise Financial...

Might this be what William Bernstein calls "faces in the clouds"?

[ejman]

Thanks to all for your input. I've sold my entire position and bought Vanguard Small Cap Value fund. We'll see how it goes. I'm sure with my exquisite ability to time these things and drive markets by my actions Acorn will now proceed to blow the pants off every small/medium cap fund on the planet. So to all Acorn holders - you are welcome.

[target2019]

More times than not, the Russel 2000 Value marker appears in the upper 50% of performance. And 100% of the time the marker is light blue. But your investment may go down, and still rank highly!

[gayl]

So I posted this on another thread but I'll bottom line it here.

Adviser states put 30% into fixed income -- bonds. Don't understand those. But did inherit CDs paying 3.1 - 3.5%.
In my core portfolio I am:
SPY 50%
SCHD 30%
SCHA 10%
PID 10%

In my explore portfolio I am
BUFBX 50%
Individual stocks 40%
Cash 10%

WWYD:
(A) sell CDs on secondary market and put into bonds
(B) put cash into bonds (thinking of doing options so it's historically high)
(C) ignore adviser

My inclination is to do C

Sent from my SAMSUNG-SGH-I537 using Early Retirement Forum mobile app

[aja8888]

In my opinion, you would be crazy to sell the CD's at those rates. You can't get anywhere near that today. Buying into bonds brings in interest rate risk (rates go up, bond prices fall).

I would go with "C" based on just the advice to sell the CDs, especially if they don't mature for a good while.