PRPFX Has Been on a Nice Run

Discussion of funds that implement the Permanent Portfolio strategy

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Ad Orientem
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Re: PRPFX Has Been on a Nice Run

Post by Ad Orientem » Sun Sep 23, 2012 9:31 pm

I'm having a hard time thinking of exactly how one would short PRPFX.
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Re: PRPFX Has Been on a Nice Run

Post by Pointedstick » Sun Sep 23, 2012 9:57 pm

Ad Orientem wrote: I'm having a hard time thinking of exactly how one would short PRPFX.
You could always just go short PRPFX, but I prefer the DIY version for more efficient portfolio annihilation. Just look at that gentle downward curve!

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Re: PRPFX Has Been on a Nice Run

Post by AgAuMoney » Mon Sep 24, 2012 8:03 pm

Pointedstick wrote:
Ad Orientem wrote: I'm having a hard time thinking of exactly how one would short PRPFX.
You could always just go short PRPFX
PRPFX is a mutual fund, not exchange traded as either a CEF or ETF.  So how would you "just go short PRPFX"?
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Re: PRPFX Has Been on a Nice Run

Post by Reub » Mon Sep 24, 2012 8:10 pm

I think that he was joking. As was I.
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Re: PRPFX Has Been on a Nice Run

Post by HB Reader » Tue Sep 25, 2012 12:31 pm

Ad Orientem wrote: I'm having a hard time thinking of exactly how one would short PRPFX.
You might look at my FAD ("Forecast and Destroy") Portfolio from the forum's "Suicide Portfolios" competition last year.  It was: 25% GLL (short gold); 25% TMV (3x short LTT); 25% TZA (3x short small cap); and 25% UDN (short the US dollar index).  Since approximately last June, it has turned $100 into $55.
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Re: PRPFX Has Been on a Nice Run

Post by portart » Thu Feb 28, 2013 8:58 am

Market is at it's highs and PRPFX is below fifty by a decent amount. Gold is culprit here I suspect and bad stock picking.
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Re: PRPFX Has Been on a Nice Run

Post by MediumTex » Thu Feb 28, 2013 11:10 pm

portart wrote: Market is at it's highs and PRPFX is below fifty by a decent amount. Gold is culprit here I suspect and bad stock picking.
I'm sure that the Swiss francs and silver aren't helping either.
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Re: PRPFX Has Been on a Nice Run

Post by clacy » Fri Mar 01, 2013 12:48 pm

Silver is down roughly twice what gold is over the last year.  Swiss Francs are down 4% over that time as well.

The fact is PRPFX is more weighted towards inflation and $USD devaluation than the HBPP is.  We're not seeing either of those things happen in any significant fashion. That is why it will often trail the market and the HBPP, IMO.
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Re: PRPFX Has Been on a Nice Run

Post by clacy » Sat Mar 02, 2013 11:36 am

Yes I was commenting on why it's been dragging lately. I have no prediction on what is to come next.
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Re: PRPFX Has Been on a Nice Run

Post by Ad Orientem » Sat Mar 02, 2013 11:38 am

MangoMan wrote:
clacy wrote:

The fact is PRPFX is more weighted towards inflation and $USD devaluation than the HBPP is.  We're not seeing either of those things happen in any significant fashion. That is why it will often trail the market and the HBPP, IMO.
Unless, of course, we are in an inflationary environment, in which case it should outperform HBPP. We don't know what's coming next.
That is a good point. PRPFX has historically underperformed during periods of prosperity due to its orientation towards inflation and the lack of indexing. But in an inflationary environment or one where gold is rising such as we saw during the last decade it does quite well. As I have said before, if I had a strong conviction that inflation is going to be a major problem in the not too distant future, but wasn't prepared to bet the farm on it, PRPFX would be a good way to play that speculation while still retaining a fair level of diversification in case your wrong.

My only real heartburn with PRPFX is its E/R which would seriously detract from your long term returns.
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