MSVX Summary
| Fund Family | NA |
| Category | NA |
| Structure | NA |
| Inception Date | NA |
| Expense Ratio | NA |
| Yield | NA |
| Net Assets | NA |
| Avg. Volume | NA |
Report Card
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We cross examine over 500 alternative funds to uncover the best means of delivering strong risk-adjusted returns for your portfolio.
Key Performance Metrics
Protect
We measure a funds ability to protect against stock market declines by comparing various downside specific risk measures. Max drawdown is the largest decline for the security while the Ulcer Index quantifies both the depth and breath of all drawdowns. We also look at downside volatility and beta, both of which are measured relative to the S&P 500.| Statistic | 1 Year | 3 Years | 5 Years |
|---|---|---|---|
| Max Drawdown | -100.00% | -100.00% | -100.00% |
| Recovery Time | Ongoing | Ongoing | Ongoing |
| Ulcer Index | 87.46% | 50.75% | 39.73% |
| Downside Volatility | 104.45% | 58.77% | 45.42% |
| Downside Beta | 1.27 | -1.46 | -0.93 |
Perform
We measure a securities ability to Perform by comparing net annual returns relative to our benchmarks. To measure absolute performance, we use the well-known Sharpe and Sortino ratios but prefer a risk-adjusted ratio such as Jenson's Alpha. Ultimately, performance is the most critical variable in fund selection so we take a much deeper dive into this measure.| Statistic | 1 Year | 3 Years | 5 Years |
|---|---|---|---|
| Annual Returns | -100.00% | -100.00% | -100.00% |
| UPI | -1.20 | -2.04 | -2.52 |
| Sortino Ratio | -1.00 | -1.77 | -2.20 |
| Sharpe Ratio | -0.71 | -1.25 | -1.56 |
| Jensen's Alpha | -157.26% | -130.27% | -108.74% |
Participate
Participate measures the ability of a security to improve the effecient frontier of a stock portfolio. If the letter grade for this fund is an F, the fund does not provide any diversification or participation benefit. The Statistics presented are calculated using an either an optimal mix of MSVX or, if no participation benefit exists, a 60% S&P 500 and 40% MSVX.| Statistic | 1 Year | 3 Years | 5 Years |
|---|---|---|---|
| Ulcer Index | 1.91% | 6.96% | NA |
| Downside Volatility | 4.84% | 7.63% | NA |
| Annual Returns | 18.37% | 5.41% | NA |
| UPI | 6.74 | 0.77 | NA |
| Sortino Ratio | 2.66 | 0.71 | NA |
Comparison
| Statistic | MSVX | VBINX | AOM | MAPSA |
|---|---|---|---|---|
| Value Per 10K | $0 | $15,446 | $13,089 | $15,987 |
| Total Returns | -100.00% | 54.46% | 30.89% | 59.87% |
| Annual Returns | -100.00% | 9.08% | 5.53% | 9.84% |
| Standard Deviation | 64.14% | 11.52% | 8.96% | 10.92% |
| Downside Deviation | 45.42% | 7.26% | 5.77% | 5.70% |
| Max Drawdown | -100.00% | -21.61% | -19.96% | -17.50% |
| Recovery Time | Ongoing | 788 days | 956 days | 765 days |
| Ulcer Index | 39.73% | 8.11% | 7.38% | 8.16% |
| Sharpe Ratio | -1.56 | 0.78 | 0.61 | 0.89 |
| Sortino Ratio | -2.20 | 1.24 | 0.94 | 1.71 |
| Ulcer Perf. Index | -2.52 | 1.11 | 0.74 | 1.19 |
| Beta | 0.53 | 0.71 | 0.52 | 0.28 |
| Downside Beta | -0.93 | 0.75 | 0.55 | 0.22 |
| Treynor Ratio | -1.88 | 0.13 | 0.11 | 0.35 |
| Jensen's Alpha | -108.74% | -2.62% | -2.97% | 5.22% |
| Mac's Alpha | -85.04% | -3.16% | -3.59% | 6.14% |
Bottom Line
MSVX is a long/short '40 Act fund that assumes both long and short positions. A short position is a bet against a security that appreciates when the security declines in value. Short positions technically have the potential for unlimited losses posing a potential risk not found in funds implementing a traditional approach. With that said, long/short funds tend to have a lower risk profile and should have a much lower beta score than long-only funds. The investor needs to do proper due diligence on the fund to ensure the strategy meets the desired investment objective. The scores presented here should give an investor a good idea if the fund is meeting its objective but we recommend an extensive study when utilizing a sophisticated fund such as MSVX.
It is important to note that a long/short fund may vary its long/short exposure or may have a fixed ratio (i.e. 130/30). Some funds have an equal weighting of long and short positions thus the moniker "market neutral". It is critical for the fund's long/short ratio to be commensurate with its beta score. For example, a 130/30 fund should have a beta around 1.0 whereas a market-neutral fund should have a beta around 0.0.
Some potential disadvantages of this fund are:
- High expense load: This fund carries a significant management fee and may invest in securities or strategies that have additional expenses (i.e. expense layering).
- Misleading Historical Returns: Often times funds such as MSVX are the beneficiary of "survivorship bias" or even "performance bias" where fund families only utilize a managed futures approach that has worked well historically but may not work as well going forward.
- Lack of Predictability: The fund's performance will likely not be predictable nor have a consistent track record relative to various indexes. As market conditions change, the fund may not perform according to its historical performance.
- Free-riding: There is no conclusive means of ensuring the fund manager is not free-riding the fund for his or her own benefit.
- Style drift: There is no guarantee the fund manager will not change the approach that has been responsible for the fund's historic returns.
Free Risk Profile Assessment
Risk management is a critical factor in creating long-term financial security, especially for those in retirement. Too often bear markets can sabotage a lifetime of savings. And quantifying risk using yesterday’s data is too often insufficient.
For an extensive, forward-looking risk assessment profile for your investment account, fill out the form and we’ll contact you soon. Our report will answer the following:
- Does my portfolio match my level of risk aversion?
- Do my investments properly account for sequence of return risk?
- What is my interest rate risk exposure?
- What is my downside risk if the S&P 500 falls 50%?
- Is my portfolio adequately hedged for inflation?
- What is the upside expectation for my portfolio when the S&P 500 appreciates?
- How will my portfolio react in various economic climates?
- Are there more effective ways to hedge risk than my current approach?