Gold is up over 5% during a two day period and this fund still loses?? What's up with that?
Seriously, I bought this fund to hedge against any severe downward movement in S and P mutual funds and even when the stock market is brutal, this fund still has higher losses.
I was in this fund for about 1 and a half years, and finally got out on Friday. Why? It just seems like you never get a fair shake on it. Even on my last day, Friday (8/31/12) gold was up over 2.2%, silver was up 4.5%, the S and P was up .8, yet this fund was only up .88 per cent. Why? Who knows. Very difficult to track and I think PRPFX management likes it that way. My net tally after 18 months on this fund was down 1.5%. Of my 7 funds, this was my only loser. VWELX, VWINX, VNJTX, VWESX, Yackman and Yackman Focus have all averaged over a 13% return for that 18 month period.
I appreciate all the blogers who say to hang in there and that this fund is for the long haul. I'm not so sure about that. I look at PRPFX's track record for the 1980's, the 1990's....right thru 2002 and see that their performance was brutal. I'll take my chances by increasing my other holdings with my PRPFX redemption.
PRPFX has been the "go to" fund for several years, drawing in tons of money. But we've seen how hot funds can turn terrible (look at FAIRX). Even the mgt of this fund acknowledges it goes through long periods where it doesn't do well.
For me the slippage in PRPFX is alarming and watching my gains continually erode is not working for me. I own few mutual funds now, mostly just a mix of ETFs. When the market tanks like it did June 21 and PRPFX drops 2%, my alarms really go off.
I think I will really reduce this holding and possibly eliminate it in the near future...before all my gains of several years are gone.
Amen, brother. We must be thinking alike because that jumped out at me as well. As my previous postings acknowledge, I went into this fund to "hedge" the S and P. That clearly is not working. At least with FAIRX (a fund I had in the past) it had miserable days, but came back with a vengeance in a short period of time. This fund seems to capture all the downward movement of the markets, but none of the upside. Look at today... ,06 percentage gain??? Brutally bad considering the Nas was up 1.2% and gold was up .5%!
Compare the graphs of PRPFX and UUP (a dollar bull ETF). It seems like PRPFX is more than anything a hedge against a falling dollar, and is designed to be that. But when the dollar goes up, PRPFX goes down -- in general. And PRPFX may be somewhat more volatile than UUP -- not sure about that.
I bought my first shares of PRPFX in January 2008 and later bought more and then more and continue to hold it as a satisfied customer. But it's not my number one holding anymore. That's HYG, for the yield and the positive correlation with stocks but with less volatility (until interest rates go up?).
Something that's not well correlated with PRPFX or UUP is TLT.
By the way, I don't own UUP or TLT (but I do have some shares of a long-term Treasurys mutual fund, BTTRX).
As they say past performance is no guarantee of future performance. Personally, I'd rather look at the fund's holdings and see if they make sense for the current economic environment. It is interesting that PERM the EDF equivalent of the Permanent Portfolio is outperforming it.