rotating cyclical fund

Anyone know of a fund that changes its holdings based on projected upswings
in different sectors?
Any with a decent track record and low fees?

Re: rotating cyclical fund

Carlos wrote:
>
> Anyone know of a fund that changes its holdings based on projected
> upswings in different sectors?
> Any with a decent track record and low fees?

In April 2002, Morningstar asserted that there were only three sector
rotation funds:


Of the three:
- T.O. Richardson Sector Rotation Fund (TRSRX) has folded (though the
management company still manages money according to this strategy)
- MFS Managed Sectors Fund (MMNSX) is slated to be merged away this
month, and
- Rydex Sector Rotation Fund (RYSRX) is a 2 star fund with a 1.66%
expense ratio.

A couple of months after that AP article appeared, Business Week had its
own article on these funds, listing a fourth fund:


- ICON Fund (ICNIX), a 1 star fund with a 1.33% expense ratio

The last time this question came around,

I added:

- N&B Focus Fund (NBSSX), a 1 star fund, but relatively low expenses
(0.85%), and a Morningstar summary line of: "despite its extreme
volatility, this is a good mutual fund for the right kind of investor."


(If you look at the 5 and 10 year ratings, you'll see above average
returns, but extremely high volatility, which is what earns it its
1-star ratings, even over these periods.)

Not much to choose from, and given that these funds are folding as fast
as they are created, it does lead one to question whether this is a good
idea. The articles cited above give longer critiques. (NBSSX is the
exception, having been around for 50 years or so, but it started out as
a utilities fund.)
--
Mark Freeland

Re: rotating cyclical fund

Mark Freeland wrote:
> Carlos wrote:
> >
> > Anyone know of a fund that changes its holdings based on projected
> > upswings in different sectors?
> > Any with a decent track record and low fees?
>

> Not much to choose from, and given that these funds are folding as
fast
> as they are created, it does lead one to question whether this is a
good
> idea. The articles cited above give longer critiques. (NBSSX is the
> exception, having been around for 50 years or so, but it started out
as
> a utilities fund.)

You could argue that any deep value/ contrarian fund is a 'sector
rotation' fund: ie it rotates away from popular sectors and stocks
towards unpopular ones although the meaning is the opposite of what is
probably meant.

Conversely, a fund that uses a rigorous earnings momentum strategy such
as

Artemis European Growth Fund

is also a 'sector rotation fund'. Not sure what the equivalent
American fund would be.


>

Re: rotating cyclical fund

"Carlos" <> wrote

> Anyone know of a fund that changes its holdings based on projected
> upswings in different sectors?
> Any with a decent track record and low fees?

I think most good funds and even good diversified funds adjust their
weightings when it seems like the right thing to do.