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Explorer ○

VASFX

This Vanguard alternative strategies fund will become more accessible ($50k instead of $250 and not just institutions) in November.  Granted that these types of funds aren't designed to make you rich but to preserve capital. Also, given the confusing nature of today's markets would like readers thoughts about this fund. Thanks. 

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Explorer ○○○

Re: VASFX

If you want to preserve capital, couldn't you do this with a money market, or a bond fund??  Why a fund with a 50k minimum & a .66% expense fee??  

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Explorer ○

Re: VASFX

Possibly a better return along with preservation.  MM funds will pay less as interest rates fall and bond funds carry their own risks from duration to credit wothy to income generation to maybe negative rates.  Why not something that isn't correlated to stocks or bonds?  As for the expense ratio, it's a matter how horrible you think it is.  Compounding works as long as your principal is safe, especially given the reasonable idea that future returns for stocks and bonds isn't rosy.

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Frequent Contributor

Re: VASFX

See this conversation about alternative funds:

https://community.morningstar.com/t5/Mutual-Funds/Arbitrage-Mkt-Neutral-Funds/m-p/22882

When Market Neutral / Long-Short / “Alternative” funds get it wrong, they can really implode. Who remembers WAGFX or TEAMX?

I’ll repeat my comment from that thread:

“A long time ago I owned ADAIX and ARBFX. Both disappointed. I think that these vehicles make some sense in principle, but not in practice. They’re expensive to implement, grow very gently when they’re working, are annoying when they stagnate or drop, and are generally not that easy to own. I made a microscopic profit on these before I sold them, and have never been interested since.

As Yogi said, experiment if you must, but keep it small.”

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Explorer ○

Re: VASFX

Totally accept your history argument.  The results haven't been good, but I wonder if we are still playing on that same field.  MMT is coming if it isn't already here in a light form.  Negative interest rates--financial systems aren't constructed for them.  The repression of savers will continue for as long as long central bankers can do it.  So uncertainty abounds in stocks, bonds, and cash with markets that move with every word in a tweet after some computer program translate it the way it is set up to do.  Hey, maybe I'm wrong but the last 18 months haven't had great overall returns.

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