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I Wonder If Cuggino Is Buying Longer Dated Treasurys
Posted: Fri Aug 20, 2010 12:44 pm
by MediumTex
It occurred to me today that PRPFX has been holding up better than one would expect in light of current market conditions (everything flat or down except LT treasurys) and PRPFX's historically low exposure to the long end of the treasury market.
I haven't looked at PRPFX's holdings lately, but I wonder if Cuggino has purchased longer dated treasurys recently?
Cuggino strikes me as a bit of a herd follower, so it would make sense for him to be beefing up the fund's treasury allocation with longer dated bonds, since that seems to be the popular trade right now.
Re: I Wonder If Cuggino Is Buying Longer Dated Treasurys
Posted: Fri Aug 20, 2010 1:01 pm
by foglifter
I checked the M* portfolio page and it does show some additional purchases as well as new positions in gold, Treasuries, and Swiss bonds as of 7/31. Looking at the rates it looks like the new Treasury notes must be LTs, although I'm not sure.
Re: I Wonder If Cuggino Is Buying Longer Dated Treasurys
Posted: Sun Aug 22, 2010 4:06 am
by BugMan
MT,
You should call and ask him. The guy loves to "talk shop".
MediumTex wrote:
It occurred to me today that PRPFX has been holding up better than one would expect in light of current market conditions (everything flat or down except LT treasurys) and PRPFX's historically low exposure to the long end of the treasury market.
I haven't looked at PRPFX's holdings lately, but I wonder if Cuggino has purchased longer dated treasurys recently?
Cuggino strikes me as a bit of a herd follower, so it would make sense for him to be beefing up the fund's treasury allocation with longer dated bonds, since that seems to be the popular trade right now.
Re: I Wonder If Cuggino Is Buying Longer Dated Treasurys
Posted: Sun Aug 22, 2010 11:11 pm
by SmallPotatoes
Is PRPFX the new 4x25?
Since I incorporate VTWSX into my PP I've actually done a smidge better than a traditional TSM fund. The trade-off (there always is one) is a higher ER.
Re: I Wonder If Cuggino Is Buying Longer Dated Treasurys
Posted: Sun Aug 22, 2010 11:52 pm
by foglifter
SmallPotatoes wrote:
Is PRPFX the new 4x25?
Since I incorporate VTWSX into my PP I've actually done a smidge better than a traditional TSM fund. The trade-off (there always is one) is a higher ER.
It's been around for quite awhile: according to Yahoo Finance the inception date is Dec 1, 1982.
I think TSM or S&P500 fund served as a good option for the equities part of PP a couple of decades ago, but since US economy share shrank to ~40% a total world or world ex-US fund seem to be a better option. Personally I decided to forgo international developed markets (due to high correlations with US) and use emerging markets as a tilt for TSM.