Value Partners High Dividend Stocks Fund — Security Selection

Value Partners High Dividend Stocks Fund has excellent long-term security selection (stock picking) performance. Results are ahead of 2/3 of U.S. mutual funds. However, inconsistency of security selection returns is a concern.

The fund generated approximately 3% annual gross return from security selection:

Value Partners High Dividend Stocks Fund αReturn (AlphaReturn)

Value Partners High Dividend Stocks Fund αReturn (AlphaReturn)

This is the residual return, or αReturn. It is the return in excess of the systematic performance due to the fund’s factor (market) bets. It is also the return a fund would have generated in a flat market.

This compares favorably to U.S. mutual funds:

Value Partners High Dividend Stocks Fund and Group αReturn (AlphaReturn) Distribution

Value Partners High Dividend Stocks Fund and Group αReturn (AlphaReturn) Distribution

One major issue is inconsistency. The other is the expense ratio, eating up approximately 2/3 of the historical αReturn.

 

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