The prospectus shows annualized TOTAL RETURN figures for both FBIOX, S&P 500 (IMO rather meaningless) and the index that the powers that be at Fido determined to be a suitable benchmark: MSCI US IMI Biotechnology 25-50 Index (which I will refer to as “MSCI”).
All for periods ending 12/31/13. Let’s review what is found in the PROSPECTUS:
FBIOX annualized returns first, then MSCI’s (and for fun! lastly, IBB’s)
1 Y: 65.66% 66.53% 65.54%
5 Y: 26.98% 24.85% 26.43%
10 Y:14.25% 15.13% 12.33%
Funny thing: when I ran the comp function on Bloomberg, I got the SAME TOTAL RETURN figures! In other words, not only am I capable of using a Bloomberg, but Bloomberg does provide ACCURATE calculations. Bloombergs are on just about EVERY trading desk for a very good reason.
Bottom line: The only “point” I was trying to convey was, IMO some posters were a tad enthusiastic re Kaul’s performance and I attempted to demonstrate why I felt this way.
I was incorrect when I Initially stated that IBB had outperformed FBIOX over some of the time frames cited and I provided accurate TOTAL RETURN info from a Bloomberg.
I believe citing figures from FBIOX’s prospectus will satisfy my statement re Kaul.
As noted above, FBIOX has not beaten its chosen benchmark by a wide margin.
One big difference between us: I have acknowledged an error, whereas you have been radio silent about your % calculation errors. I hope I have taught you something.
P.S. I am not long IBB.
P.P.S. What really matters is that we both have biotech exposure and lately that has been a good thing.
“Wiggles, start by looking in the mirror and saying you only have yourself to blame. It will be a start towards your salvation. To state that Kaul's management of FBIX didn't beat IBB is flat out wrong.” (I only made that statement at the onset and rectified this; why do you continue to harp on this? (to distract one from the truth?)
Isn’t it a bit childish to manipulate another poster’s moniker?
You seem to have a fascination with mirrors.
“blame” for what?
I am not in need of “salvation”.
My original comment was, now I’m paraphrasing, while Kaul has done well, I don’t think he should be deified by its shareholders given how FBIOX has performed compared to IBB.
Yes, I originally stated that IBB had outperformed FBIOX and I was WRONG. I was alerted by you that YahooF’s chart only showed price movement and not total return.
To rectify my error, in a subsequent post, I posted TOTAL RETURN figures for both FBIOX & IBB, sourced from a legitimate provider, a Bloomberg terminal. BUT…you didn’t like the numbers and “gently” suggested I was clueless.
Shockingly, you demonstrated that you were incapable of calculating percentage changes:
“59 to 226 equaled 383%” WRONG; while 226 is 3.83 times greater than 59, a move from 59 to 226 represents a 283 PERCENT CHANGE in price. How about a “quadruple equals 400%”? (it’s 300%).
Since you didn’t like the Bloomberg numbers, I have sought out the gold standard: the FBIOX prospectus.
There's my hook! To be continued on my next post...
vincent, you are confused.
First off, KMI et al are HUGE and IMO retail investor actions do not have much affect on the share price.
"Cramer has single handedly destroyed more individual's wealth...blah, blah..."
Wrong. Each individual is RESPONSIBLE for their own actions.
If you can't stand the heat, get out of the kitchen!
P.S. It's time you take responsibility for your actions (what a novel idea!)
Or.....it could simply be many agree with the substance of that particular post.
I imagine most Americans would like to see those who are responsible for various "errors of judgement" to be culpable, and not just the company itself.
"If you own the stock why dont you know when ex div date is. I never owned a stock without knowing that. People who dont know these simple things should not be in the equities market period."
Well your sentiment seems a tad harsh. Had you written about not knowing what "ex-div" is, I might be in agreement. I have NO idea of the ex dates of the numerous equity positions I own; I'm not clear how knowing an ex date is beneficial--especially for investors (read long term holders).
The "news" was pretty much a forgone conclusion. Once the vote was confirmed, as others have noted, for the short term, it's sell on the news. IMO, just noise--heck, the shares are still in the 40's (for now).
Mutual funds are actively managed; meaning the portfolio manager actively buys and sells the fund's holdings. If one is willing to accept YahooFinance's info, FBIOX has annual portfolio turnover of 35% (about 1/3 of the holdings are sold per year). IF a fund has more NET short term and or long term capital gains, it will pay out most of those gains via either a short term or long term capital gain distribution. (If a fund's holdings earned dividend income, that would be paid out as "income". Most equity funds pay distributions once a year, near year's end, whereas bond funds typically pay out income more frequently.
We all know that FBIOX has done well this year, as well as the past several years. It is not surprising that profits were taken from some positions during 2014. Since the gains outweighed any losses taken, the gains were recently distributed. Note: no short term gains were distributed.
Investors have the option to either take the distribution(s) in cash or to have the distribution(s) reinvested into more shares. If the latter, this is actually a purchase of shares. The NAV is adjusted down by the amount of the distribution. Since most people want to remain fully invested, the opt to reinvest the distribution(s).
Investors get more shares, but at a lower NAV. IAs others and I have previously noted, f the position is held in a taxable AC, the distribution(s) are taxable that year.
There is no financial magic associated with capital gain distributions, but given human nature, from an emotional perspective, most people prefer to have more shares at a lower NAV!
It is great that you have taken an active interest in investing given your relative young age.
You didn't ask, but here's a few suggestions:
If you have access to a 401K, try to contribute as much as you can; particularly if your employer has a match (that's FREE money).
Consider investing in a ROTH IRA
Consider investing in a Total Stock Market Index Fund
That's an apt description of YOU!
P.S. Why don't you post on the DMND board? Months back, with DMND's share price much lower than it is today, you incessantly posted silly, foolish posts and now, radio silence.
Don't you bore yourself with the same schtick???
Not a dumb question and you seem to have the correct perspective.
It is a wash, but the event may have tax consequences!
I have read some posts where the poster seems to think receiving a rather large distribution is wonderful.
I own a number of individual equities. In a TAXABLE AC, when I sell a position at a profit, I don't only reinvest my original principal, but I also invest the gain. I have to pay capital gains taxes on my gain. This is similar to a fund that has taken more gains than losses the past twelve months. FBIOX netted out a capital gain, and by law, must pay out most of the gain. Most fund investors reinvest their distributions (similar to investing gains in individual stocks). By reinvesting distributions, investors keep their EXPOPSURE the same, but they have to come up with funds at some point to pay capital gains taxes. When they reinvest the distribution, they are BUYING additional shares at the post NAV share price.
Distributions show that a fund's assets have appreciated, but we all knew this simply by watching FBIOX's NAV increase. (Of course, there have been some years when a fund's NAV is down for the year and a distribution is still made!)
Distributions make mutual funds not so tax efficient. Many pundits suggest putting less tax efficient investments in a tax deferred or tax free account and holding more tax efficient investments (index funds for example) in a taxable account. I hold my biotech position in my ROTH. It is also recommended, if one is investing in a taxable account, to wait until a large distribution is paid, before buying shares in a fund.
"The high short interest makes me think large funds are still betting against this for some reason."
The November month end short interest will be released soon and I expect a huge decline.
IMO, A LOT of the short interest was related to selling KMI short and going long the MLPs; MLPs were then exchanged for KMI (and cash) and those KMI shares were used to cover the initial short of KMI.
"Wall Street owes billions to the people in TRC's area for 3 decades of
stock-manipulation that severely #$%$ their economic development.
Many might become TRC-holders if its price & policies were rational."
I'm not clear how the above relates to your prior post suggesting TRC invest in equities.
Why didn't your post identify the "leading national securities and shareholder rights law firm"?
Okay, it's rather obvious, given your moniker, but why the secrecy?
Well, I'm glad you got that off your chest.
Just last night, I bought some farmed salmon at WFM for 12.99/lb, and guess what? I grilled it at home.
Yes, the NAV will be adjusted down the amount of the distribution.
It is best to hold funds that typically pay out large distributions in a tax advantaged account and to hold more tax efficient funds (index funds) or individual equities in a taxable account.
Bottom line: to each his/her own.
Although emotions have no place in the investing equation, that is easier said than done!
One must feel comfortable with their portfolio; otherwise, they will take actions they may regret.
Some holders of the MLPs have shorted KMI and they will cover their short with the KMI shares they receive when the deal is closed.
pslabowski, re. distributions, there is no "cake and eat it too" possibility.
Sell before distribution and you get X per share.
Sell after distribution and you get X per share LESS the distribution amount--NAV will be adjusted down the amount of the distribution.
IMO, a pending distribution should not be a factor when determining whether to sell.
Same goes with stock dividends--assuming all else is equal.
A pending distribution SHOULD be a factor when considering buying a fund in a TAXABLE AC. Buy right before distribution and you get a TAXABLE event; most likely it is better to wait until the distribution is paid before buying a mutual fund in a taxable AC.
It seems that many believe the slump in oil's price will be with us for years, I'm not convinced just yet.
I bought just less than 1% of my holdings today (not including the shares I added on Monday) via div reinvestment!