QLENX has been a stellar performer for me and my largest position. As for the Pimco CEFs, I time the market like I dance, poorly, so I hold. They are all almost back to the pre tariff tantrum values for me with some investments while they were down and the income is hard to beat. My portfolio this morning hit its all time high. So I am just keeping on doing what I have been doing.After reducing PAXS and PDO yesterday, I reduced them again - and PDI, PFN and PHK as well, raising cash to 22%.
The charts of all look tired to me. All have price and 50 dma below 200 dma. A couple may be ready for an Elliott Wave 2 pull back. Several are close to resistance (as well as support). And I think Dick's reasoning is solid.
I'm also positioning for QLENX to play a larger role in my portfolio than in the past. (Hat tip COcheesehead)
Best wishes to all,
Bill
Hi. Just in case: did you see the financupials summary released recently? D+ MP @ 19.55 - this is the (only?) rare earth miner and extractor /processor in the US (located in California - one must only wonder how that is possible) which rose up to $30+ on the news china was withholding rare earths and is now more attractively priced since to my eyes, nothing has changed.
+ OXLC @ 4.50 - first tranche repurchased that I sold at $4.94, bids in lower. Yes, its risky, with its nutty (24% I think) div that's what you pay the fund managers their fees for.
I also hold QAMNX (small amount) and QLENX (not so small) and have been generally happy with them. I view them as market neutral funds (QAMNX does a better job of this than QLENX) that allow me more equity exposure without having to worry about risk on/risk off with SPY & QQQ.
+ MP @ 19.55 - this is the (only?) rare earth miner and extractor /processor in the US (located in California - one must only wonder how that is possible) which rose up to $30+ on the news china was withholding rare earths and is now more attractively priced since to my eyes, nothing has changed.
+ OXLC @ 4.50 - first tranche repurchased that I sold at $4.94, bids in lower. Yes, its risky, with its nutty (24% I think) div that's what you pay the fund managers their fees for.
I also hold QAMNX (small amount) and QLENX (not so small) and have been generally happy with them. I view them as market neutral funds (QAMNX does a better job of this than QLENX) that allow me more equity exposure without having to worry about risk on/risk off with SPY & QQQ.
yeah not stellar but OTOH rate sensitive. I agree there is a lot of risk in the CLO area but not all these people are going to go bk7 immediately, and that's why you get that 24% dividend which I am happy to collect. Remember I sold a bunch at 4.94 so I'm happy to accumulate towards $4.00. While I expect rising LT rates, and I do expect some loan defaults in the consumer sector as student loans come back online and people will be squeezed, this stuff never hits as quickly as you think it will ('06=>'08->'09) and rate cuts with a flight to quality will provide an attractive exit before real problems. Ditto for the mREITS which will also eventually come under some pressure as the prior administration's mortgage support programs (! - go look into that and how it was utterly abused if you want to be really angry by the way) wind up.Hi. Just in case: did you see the financupials summary released recently? D
Hi COcheesehead,Been adding to my alternative allocation over the last while. I’ve had really good performance from QLENX and have been creating another substantial position in its cousin, QMNNX. They are in the category of long/short and market neutral. Both are up 14% ish YTD. Both 5 star funds.
These are situational funds for me leaning toward my goal of capital preservation though they have addressed my growth goal as well. I may or may not hold them long term, but for now they helped my portfolio to an all time high as recently as a couple days ago.
Chart showing 3 year performance vs the S&P. QLENX in red, QMNNX in dark blue. S&P in light blue.
View attachment 55852
It has one huge dividend at year end. I have it in an IRA so I never paid attention to how they categorize the dividend. I bought it to save my butt at a market high and so far it has.Hi COcheesehead,
I would assume QLENX generates primarily ordinary income?
Seems rather timely for this market.
QMNNX looks interesting. How long have you been investing in it? Trying to research the main differences between it and QLENX which I own. Thanks for posting.Been adding to my alternative allocation over the last while. I’ve had really good performance from QLENX and have been creating another substantial position in its cousin, QMNNX. They are in the category of long/short and market neutral. Both are up 14% ish YTD. Both 5 star funds.
These are situational funds for me leaning toward my goal of capital preservation though they have addressed my growth goal as well. I may or may not hold them long term, but for now they helped my portfolio to an all time high as recently as a couple days ago.
Chart showing 3 year performance vs the S&P. QLENX in red, QMNNX in dark blue. S&P in light blue.
View attachment 55852
QMNNX is the newer of the two for me. QLENX was getting to be a bigger and bigger position. I added to it over the last couple of years and then it grew organically by a lot so it started becoming such a big position, it was making me nervous because of so much concentration. It’s worked out great, but…you never know so that’s when I found QMNNX which is the same family, but with a different hedging strategy of market neutral vs long/short.QMNNX looks interesting. How long have you been investing in it? Trying to research the main differences between it and QLENX which I own. Thanks for posting.
Yeah, I agree but I would be a buyer on a temporary crater caused by a 5.5% 30 year. We should know risks related to the cessation of the biden administration mortgage support program within 3-6 months I would imagine, so I am not eager to aggressively buy at these levels today.Random thought about Agency MREITS like NLY and AGNC: there appears to be an increasing likelihood that large holders of old Agency common and preferred shares will get their way and the firms will become independent private entities again. That makes it critical to follow discussions/disclosures regarding the nature of a government guarantee, if any. While substantial credit losses are unlikely on MBS supported by pools of well-underwritten well-collateralized mortgages, worried investors might behave irrationally and at least temporarily crater prices. FWIW.
Regards, Dick
QMNNX is the newer of the two for me. QLENX was getting to be a bigger and bigger position. I added to it over the last couple of years and then it grew organically by a lot so it started becoming such a big position, it was making me nervous because of so much concentration. It’s worked out great, but…you never know so that’s when I found QMNNX which is the same family, but with a different hedging strategy of market neutral vs long/short.
QMNNX takes a balanced approach of equal long/short positions aiming for results uncorrelated to the equity market. QLENX will overweight long/short positions as they see fit. Interestedly both funds have returned about the same ~ 14% YTD.
All things being the same QLENX has the potential to outperform QMNNX based on how it’s structured, but QMNNX is a really nice hedge and I continue to add to it. I may eventually exchange some of my QLENX into it as well.
My goals, often stated are high current income, capital preservation and then growth. I invested in both of these to provide some protection to achieve goal #2, but they have also achieved goal #3 as well.
So great to find this thread! I was a big fan of yours at Fidelity, and you and FRED got me started with QLENX, which is by far my largest holding. I was happy to see you’ve also invested in QMNNX, as I opened a position in this fund about a month ago. It’s performing well so far, and I plan to add more in the next few days.QMNNX is the newer of the two for me. QLENX was getting to be a bigger and bigger position. I added to it over the last couple of years and then it grew organically by a lot so it started becoming such a big position, it was making me nervous because of so much concentration. It’s worked out great, but…you never know so that’s when I found QMNNX which is the same family, but with a different hedging strategy of market neutral vs long/short.
QMNNX takes a balanced approach of equal long/short positions aiming for results uncorrelated to the equity market. QLENX will overweight long/short positions as they see fit. Interestedly both funds have returned about the same ~ 14% YTD.
All things being the same QLENX has the potential to outperform QMNNX based on how it’s structured, but QMNNX is a really nice hedge and I continue to add to it. I may eventually exchange some of my QLENX into it as well.
My goals, often stated are high current income, capital preservation and then growth. I invested in both of these to provide some protection to achieve goal #2, but they have also achieved goal #3 as well.