No. of Recommendations: 0
Sometime, when you’re truly bored, dig into ANGL, a newly rolled out, “value high-yield” fund. (More info at links below.) What you’ll find, as you pull T&S for each of the holdings, is that most are currently not cheap and, hence, offer little value. What you would be buying, if you bought the fund now, is a basket of expensive risk.

This isn't to say that many of these bonds couldn't be held profitably. In fact, I own at at least a quarter of them. But I was doing my buying when the buying should have been done, i.e., back when the bonds were trading at discounts. E.g., my entry into Hanson's 6.13's of '16 was at 44, not its current 106. Same-same with many other issues, such as RBS's bonds. Even as recently as late Dec, it was possible to get into their 4.7's of '18 at 65. Or, take an instance of a bond they missed, but which does meet their investing parameters, it would have been possible to buy Jefferies' 5.5's of '19 last Fall in the low 90's compared to its present price of 111.

In other words, to make money in the value game (bonds, stocks, or otherwise), it's not enough to simply have a good idea. One also has to execute in a timely manner. That is where this newly-rolled out fund will fail. In nearly every instance, they will be too late to the trade to achieve the discount to intrinsic value that is required in order to achieve a proper margin of safety. The fund managers might have read Ben Graham's book. But they didn't really understand it.

OTOH, the fund might make a good short.
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Cpn Due Weight Issuer
8.00% 11/01/31 2.3% Ally Financial Inc
6.75% 12/01/14 1.1% Ally Financial Inc
7.95% 06/01/32 1.7% Ameren Energy Generating Co
6.63% 05/23/36 2.3% BAC Capital Trust XI
10.25% 08/15/39 2.1% Capital One Capital V
8.88% 05/15/40 1.1% Capital One Capital VI
5.15% 06/15/17 1.1% CenturyLink Inc
8.30% 12/21/57 2.1% Citigroup Capital XXI
4.90% 05/15/15 2.4% CLEAR CHANNEL COMMUNICATIONS INC
6.50% 07/15/17 1.0% Commercial Metals Co
6.72% 01/02/23 1.4% Delta Air Lines 2002-1 Class G-1 Pass T
8.75% 07/15/13 1.1% Dole Food Co Inc
3.00% 11/17/14 1.9% Eksportfinans ASA
2.00% 09/15/15 1.8% Eksportfinans ASA
7.75% 01/15/32 2.3% El Paso Corp
8.00% 06/01/36 2.1% Embarq Corp
6.50% 04/15/37 1.5% Fifth Third Capital Trust IV
7.45% 07/16/31 2.6% Ford Motor Co
7.00% 10/01/13 3.2% Ford Motor Credit Co LLC
9.00% 08/15/31 3.0% Frontier Communications Corp
6.51% 02/12/67 0.8% Glen Meadow Pass-Through Trust
6.13% 08/15/16 2.1% Hanson Ltd
8.13% 06/15/38 1.1% Hartford Financial Services Group Inc
7.50% 11/15/95 0.8% HCA Inc
6.13% 04/15/16 1.1% Health Management Associates Inc
6.50% 11/01/13 1.0% Intelsat SA
5.65% 06/01/14 1.0% International Lease Finance Corp
5.63% 09/20/13 1.0% International Lease Finance Corp
5.88% 05/01/13 1.0% International Lease Finance Corp
5.88% 03/15/16 0.9% iStar Financial Inc
6.38% 10/15/36 3.4% JC Penney Corp Inc
6.00% 01/15/18 2.1% Kinder Morgan Finance Co ULC
5.50% 07/09/15 2.1% Lafarge SA
6.90% 07/15/17 2.3% Ltd Brands Inc
6.13% 10/03/16 3.2% Masco Corp
6.69% 03/29/49 1.1% Mizuho Capital Investment USD 1 Ltd
14.95% 02/28/49 0.8% Mizuho Capital Investment USD 2 Ltd
7.25% 05/01/13 1.0% New Albertsons Inc
7.38% 08/01/15 2.0% Nextel Communications Inc
7.12% 12/15/17 1.5% NGPL PipeCo LLC
5.50% 09/15/15 0.9% Nuveen Investments Inc
5.88% 07/15/16 2.2% Pioneer Natural Resources Co
7.63% 10/15/17 1.1% Pulte Group Inc
6.45% 06/26/37 2.0% Regions Bank/Birmingham AL
6.85% 07/15/18 2.0% Rockies Express Pipeline LLC
5.00% 10/01/14 2.0% Royal Bank of Scotland Group PLC
6.63% 05/01/20 1.5% Ryland Group Inc/The
6.90% 12/15/17 1.7% Springleaf Finance Corp
5.40% 12/01/15 0.9% Springleaf Finance Corp
8.75% 03/15/32 1.7% Sprint Capital Corp
6.88% 11/15/28 1.6% Sprint Capital Corp
6.00% 12/01/16 1.9% Sprint Nextel Corp
9.63% 04/15/15 1.2% Sunoco Inc
5.75% 01/15/17 1.1% Sunoco Inc
7.38% 10/15/18 2.6% Toys R Us Inc
7.00% 02/01/18 1.0% United States Steel Corp
7.50% 03/15/22 1.0% United States Steel Corp
7.13% 06/30/16 1.1% Universal Health Services Inc
6.20% 06/15/14 1.1% Wendy's International Inc
7.38% 03/15/32 2.2% Weyerhaeuser Co
0.00% 3.0% Net Other Assets / Cash

http://finance.yahoo.com/news/bond-value-investors-behold-an...
http://finance.yahoo.com/news/bond-value-investors-behold-an...
http://www.amazon.com/The-Intelligent-Investor-Definitive-In...

[Note: don't pay up for a new edition. Do what the master himself would do and buy the cheapest copy you can find. If you look around at your favorite used book-sellers, even an edition published as recently as 2006 can be found for $4.99. At that price, you are willing to mark up the book with underlining and notes. That means you are engaging the text, making his wisdom your own.]
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