Formula merging/closing to Gotham

[bargainman]

Anyone else notice this?

 

http://www.formulainvestingfunds.com/

 

We are pleased to announce the upcoming merger of Formula Investing’s operations into Gotham Asset Management, the advisor to the Formula Investing Mutual Funds. We believe that utilizing our valuation principles to invest on both the long and the short-side will provide additional benefits over long-only investing. As a result, the following measures have been approved:

The Board of Trustees has approved the merger of the long-only Formula Investing U.S. Funds into the long/short Gotham Enhanced Return Fund, subject to shareholder approval - Click here to View Supplement.

The Board of Trustees has approved the closing of the long-only Formula Investing International Funds. - Click here to View Supplement. For additional information and for alternative investment options, please call 877-974-6852. Special accommodations have been made for current Formula International Funds' shareholders who wish to invest in the Gotham long/short mutual funds.

[Hielko]

Seems like the typical 'get rid of some under-performing funds move'

[Packer16]

However, the Formula US finds were some of the best performing Formula funds.

 

Packer

[Hielko]

Thought they all didn't do very well, but guess the US funds are having a good 2013.

[stahleyp]

The US funds have done really well.

 

http://quotes.morningstar.com/fund/fnsax/f?t=FNSAX

 

Top 1% of peers over the past 3 years.  (the more "concentrated" one)

 

 

 

http://quotes.morningstar.com/fund/fvvax/f?t=FVVAX

 

Top 5% of peers over the past 3 years.

 

The international ones have been pretty bad though. Bottom 26% and Bottom 2% (more concentrated one) for the other over 3 years. Ouch.

 

 

[CorpRaider]

That's pretty disappointing.  Seems like he's doing the same thing as he criticized O'Shaugnessy for (giving up on the strategy due to a few years of underperformance).  I thought the underperformance of the international funds made them attractive at this point.  They waisted a lot of time and money working up data for the international stocks.  Also, I've heard him say on numerous occassions, that he didn't implement the long short arbitrage strategy around the formula companies because it worked in his data until it eventually blew up.