For months we have a checklist of risks of crash conditions - including internal market divergences,...
Announcing a mutual fund from Jim Jubak
07/27/2010 10:30 am EST
Follow this link to find out more about how to invest. Or read more here.
So why am I starting a mutual fund?
Three reasons, really.
First, a lot of readers have asked over the more than 13 years that I’ve run the Jubak’s Picks portfolio. They’ve asked for a fund because it would make it easier to track my picks and because they felt that they’d like me to invest for them. Let Jim do it, they said. And now I will. You can invest today by following this link to the Jubak Global Equity Fund site.
And because I want as many of the readers who asked for a fund to be able to invest in my fund, the minimum is just $500 and there’s no commission charge. (Learn how to invest in my fund by following this link.)
Second, a mutual fund will let me put your money to work in global stocks trading on global markets that are tough for individual investors to research or buy. As I’ve become more and more convinced that investors need to put a bigger share of their money into the world’s up-and-coming developing markets (and the economies such as Australia and Canada that ride with them), I’ve become increasingly frustrated with the stocks that I couldn’t recommend on Jubak’s Picks because they were too thinly traded, too illiquid, or just too hard for U.S. investors to buy.* I’ve set up Jubak Global Equity so that I can buy and sell on those markets for you.
And, third, I’m selfish. I wanted to find a big group of investors who would pay me what I consider a modest fee to do what I like best: Learn new and obscure things about companies and industries in out-of-the-way places and then turn them into investing ideas. I admit that learning the ins and outs of the rare earth mining industry, for example, is really exciting. Did you know that neodymium and dysprosium, two rare earth metals, are critical components in building hybrid cars and wind turbines? Or that China controls 95% of the world’s supply of rare earth metals? Well, neither did I—once upon a time. And now I know not only those facts but the stock tickers for two Australian companies that mine rare earth metals.
A desire to know everything, and the more obscure the better, is a terrible character flaw. And indulging it costs money.
Which is where you and the mutual fund come in. (Find how to invest in the Jubak Global Equity Fund by following this link.)
In a perfect world I’d be able to spend hours digging into the guts of the exploding Asian dairy sector—did you know that in 1998 India became the world’s biggest producer of milk, surpassing the United States – without worrying about where my next rupee was coming from. But in this imperfect world I have to find a patron. And with the world currently experiencing a serious shortage of Cosimo de Medici and other Renaissance princes, I’m afraid it means you’re on the hook.
So what do you get in exchange? You get the gladly and freely given hard work of someone who thinks it's fascinating to discover that 65% of the milk consumed in India is now unpackaged, and that while milk consumption is growing at an annual rate of 2.4% a year, consumption of packaged UHT milk—the kind that doesn’t need refrigeration before it’s opened—is projected to grow at an annual rate of 5.2% a year through 2012 and beyond. And then thinks that finding the stock of a company that will profit from this trend is a really engaging challenge.
So, that’s the deal: fund investors pay me a fee, and I try to find out cool stuff to turn into investment ideas. With, of course, one goal: to make money. (I fully appreciate that Renaissance princes didn’t sponsor people like Vasco da Gama to find a sea route to India just out of intellectual curiosity, so you get the same bargain.)
And I also give every investor in my Jubak Global Equity Fund a free subscription to my new online Jubak Asset Management JAM Letter. Every weekday and once every weekend, my JAM Letter will deliver the best of my thinking on markets, industry and sector trends, obscure companies you should know about, and videos shot at my famously uncluttered desk that explain the day’s breaking news. All this normally costs $299 a year—but to investors in my new fund it’s free.
I don’t think there’s much you or I can add to the market’s knowledge of IBM or Wal-Mart. Some twenty-three Wall Street analysts study IBM’s every move. Even more – twenty-nine –follow Wal-Mart.
But a Chinese fruit-juice company? The biggest little Australian coal mining company in Mozambique? The owner of the biggest selling vodka brands in Eastern Europe?
Ah, those you have to dig for. And if you find them before the world does, the stocks of those companies can be very profitable when the world finally does discover them.
So come along. It may not be the beginning of a beautiful friendship, but I do hope it will be the start of a very profitable relationship. (Find out how to invest in my fund by following this link.)
You should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. For a Prospectus, that contains this and other information about the Fund, call 1-888-88JUBAK or visit our website at www.jubakfund.com. Please read the Prospectus carefully before investing. Investments are not FDIC- insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
*Please note that the Fund’s investment in these types of securities is limited and that you can find more information about these limitations in the Fund’s Prospectus and Statement of Additional Information.
An investor’s shares, when redeemed, may be worth more or less than their original cost. Foreign investments present additional risks due to currency fluctuations, economic and political factors, lower liquidity, government regulations, differences in securities regulations and accounting standards, possible changes in taxation, limited public information and other factors. The risks are magnified in countries with emerging markets, since these countries may have relatively unstable governments and less established markets and economies. This Fund is also more susceptible to market volatility because small- and mid-cap company stocks tend to be sold less often and in smaller amounts than larger company stocks. Smaller companies also may not have the management experience, financial resources, product diversification and competitive strengths of larger companies.
The Jubak Global Equity Fund is distributed by Grand Distribution Services, LLC.
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