You missed the purpose of a Mutual Fund- to stay fully invested
As many of you, I watched this fund come out with great expectations. I imagined a fund manager who actually followed CAN SLIM and did all the work for me.
I expected them to get in and out of the market with the market direction signals, but alas, as I watched the first year poor performance of this fund I re-read the perspectus and realized that this was just another mutual fund that must remain almost fully invested in the market. They used the IBD 100 as a starting place to research stocks.
THINGS ARE LOOKING UP: As of 8/1/2008, for the last 12-months, they have OUTPERFORMED THE S&P500 BY 17% -- S&P500 down 13%, CANGX up 4%. I'm still not interested in a mutual fund when I can move much faster in my own portfolio. But this fund now bears watching. A prior posting mentioned the old fund manager is out -- perhaps that explains the change in ticker.
THE JOB OF MOST FUND MANAGERS: Remember, the job of most fund managers is to stay fully invested -- in good times and bad. It is your responsibility as the individual investor to decide to be in or out.
Well, it is now the 12th of June 2009 and the performance of this fund is poor. The managers do not know what they are doing, and if they follow CANSLIM, then the theory is inaccurate. This fund is down 4% for the year and all my other funds beat this by a wid margin OSMYX, HIMCX, DODFX to name a few. Wasted time, money and opportunity with this fund. Furthermore, their expense ratio is on the high side at 1.7%.
It is disappointing to see the fund's poor performance making investors question the validity of can slim, but not a surprise. We have seen flawed fund attempts before. The managers, for whatever obvious and not-so-obvious reasons, do not follow the proper discipline. An individual investor would stand a better chance of investing more successfully on their own if they follow the rules.
The time frame you referenced encompasses 2 different investment management shops that have "managed" the fund. Why Beau Duncan's shop jettisoned the fund I don't know. Maybe you do.
Between the original O'Neill fund many many years ago, the David Ryan days of the New USA Growth fund and now Duncan and North Coast maybe NCAM can beat the averages handily or just beat them....or is that just some CANSLIM wishful thinking?
It may beat the averages, which serves as some reassurance concerning the investment system in its name, however the name is misleading. Having seen the fund own more than 8 stocks, the MAXIMUM number of holdings per the rules, it overdiversifies. The fund also kept unjustified exposure to equities in a bear market, losing money when the M said investors should be on the sidelines - ignoring the rules again. This fund will not allow for investors to truly enjoy the benefits of the fact-based approach in a bull market to the extent they could on their own. With a strict discipline on entries and exits and a small concentration of high-ranked leaders, investors have the best chance of substantially outperforming the major averages.