Tom Dorsey and Tammy DeRosier interview DWA Money Manager, John Lewis. Click here.
This entry was posted on Wednesday, July 20th, 2011 at 2:31 pm and is filed under Podcasts. You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
4 Responses to Podcast: Interview with DWA Money Manager
I’m going to call your bluff. Vanguard is an excellent fund family, but you have not specified what funds you are comparing at all. Most of the time, when people make uninformed comments like this, they are comparing apples and oranges.
Below is a chart of the Arrow DWA Balanced Fund (DWAFX), which is a tactical asset allocation fund, compared to Vanguard’s STAR Fund, a very low-cost allocation fund, from the time that DWAFX has been in existence. On an apples to apples basis, contrary to your theory, DWAFX has actually performed just fine-slightly better, in fact-relative to the STAR Fund.
(click to enlarge)
Low cost is a good thing, but it does not trump performance. Your poor performance comment is, frankly, hogwash. We have good periods and bad periods like every other manager, including Vanguard, but our performance over time has been pretty good relative to our peers.
The drawdown in our fund and the Vanguard STAR fund were very similar, because they are similar funds. Your bonds have less volatility, because they are, well, bonds. That’s comparing apples and oranges.
And, by the way, bonds did not “do a lot better.” Bonds have done only marginally better, even with the tremendous equity bear market of 2008 included. See the chart below of the Arrow DWA Balanced Fund and the Vanguard Total Bond Market Fund. The returns are within a few percentage points. What will happen if bonds ever have a bear market?
If you revisit this comparison in another year or two, it may well be the other way.
We have never seen a group brag so much who has such poor performance. My low cost Vanguard funds do so much better and without your high fees.
I’m going to call your bluff. Vanguard is an excellent fund family, but you have not specified what funds you are comparing at all. Most of the time, when people make uninformed comments like this, they are comparing apples and oranges.
Below is a chart of the Arrow DWA Balanced Fund (DWAFX), which is a tactical asset allocation fund, compared to Vanguard’s STAR Fund, a very low-cost allocation fund, from the time that DWAFX has been in existence. On an apples to apples basis, contrary to your theory, DWAFX has actually performed just fine-slightly better, in fact-relative to the STAR Fund.
(click to enlarge)
Low cost is a good thing, but it does not trump performance. Your poor performance comment is, frankly, hogwash. We have good periods and bad periods like every other manager, including Vanguard, but our performance over time has been pretty good relative to our peers.
Yikes! I did not realize your loss was that big. You just back to a starting point from 3 years ago? my bonds did a lot better.
The drawdown in our fund and the Vanguard STAR fund were very similar, because they are similar funds. Your bonds have less volatility, because they are, well, bonds. That’s comparing apples and oranges.
And, by the way, bonds did not “do a lot better.” Bonds have done only marginally better, even with the tremendous equity bear market of 2008 included. See the chart below of the Arrow DWA Balanced Fund and the Vanguard Total Bond Market Fund. The returns are within a few percentage points. What will happen if bonds ever have a bear market?
If you revisit this comparison in another year or two, it may well be the other way.
(click to enlarge)