Due Diligence Meeting Take Away … Money Flows

As you probably know by now we watch and sometimes worry over what the crowd does.  Coincidentally from our last quarter performance cover letter:

 … When the tide goes out we see who has been swimming without clothes. While it will not be us, the current is sometimes strong for all….

Due Diligence Meeting Takeaway

Earlier in August I attended a due diligence meeting in the land of the Longhorn. One of the key takeaways from this meeting can be seen on this chart presented at the meeting.

Dimensional Flows

This chart compares the industry money flows to this company, Dimensional. Our concerns are especially deep in the fixed income arena, as we feel many are hiding in certain areas of the fixed income asset class without knowing the risks …. Especially in High Yield (we have long avoided.)

This due diligence meeting was well worth it, as we were impressed with this firms logic, depth and restricted access by investors. We are beginning to integrate into portfolios.

Have a Great Monday …. Sorry so heavy, but we felt it worth discussing!

John A. Kvale CFA, CFP

8222 Douglas Ave # 590
Dallas, TX 75225

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