Date: 9.26.2008 - DOW 11.143 -  up 121 points - investments were bought during a rally

Highlights from a Fund Analysis – most of them are not suitable for a conservative investment approach. The above average risk factors - ‘Beta’ and some high expense ratios are another negative factor.

APOLLO

Overseen by the private equity firm of the same name, Apollo Investment Corporation is essentially a fund that specializes in investing in the debt and equity instruments of private, or otherwise thinly traded, middle-market firms. While Apollo has been a solid performer, we think its opportunities for growth are limited in this environment. Additionally, aspects of its investment book may portend future credit issues, which could impair Apollo’s ability to maintain its dividend. Generally speaking, we would only advise an investment in Apollo stock for those with a considerable appetite for risk.

Valuation: We are initiating our coverage of Apollo Investment Corporation with a fair value estimate of $9. We think the downturn is going to last at least through mid-2010. In our opinion, Apollo's investment book suggests that realized losses will trend to more than $140 million and cash flows will shrink as the market works through the recession. If our scenario comes to pass, a dividend cut will likely occur. Apollo's revenue growth will also be constrained by some expected de leveraging and an inability to access the capital markets for equity injections. We doubt Apollo, or any BDC, will be able to raise equity at a premium to book, and thus, project just 3% organic asset growth once the recession subsides in 2011. That said, we like Apollo's secured funding, which will allow it to maintain reasonably high net interest margins of around 7% until the revolver comes due in 2011. Afterward, we expect the firm to lose approximately 50 basis points off its net interest margin. Finally, we price in a 15% chance that the BDC space may become unviable in the future. Our assumptions bake in a 12% cost of equity.

Comment:
Fair value estimates is $ 9.00 a share. The family trust paid $ 13.180 a share
Beta 1.09 - Morningstar rating: 3 stars

Dodge & Cox International

For the year to date through Oct. 15, 2008, the fund is behind three fourths of its peers and is well behind the benchmark. It has lost 46.2% over that span.

1. One of the fund's managers, Diana Strandberg, says recent underperformance owes partly to purchases she and her colleagues made gradually over the past year or so, as prices dropped and then dropped some more. In particular, she pointed to additions in developed-markets financials--a sector the portfolio had underweighted--as well as emerging-markets financials, a stake that already had been relatively high. Both moves have hurt. One name hurt more than most: American International Group AIG.

The insurance giant was 1.9% of the portfolio at the end of June 2008 (down to about 0.4% in the Sept. 30 portfolio). Another top holding, Royal Bank of Scotland RBS, has also plummeted in value

Comment:

AIG and RBS should have been sold prior to their collapse.

Morningstar: downgraded from 5 to 3 stars

Fidelity Advisor High Income Advantage I is not for the timid.
8.17.2008

As we've stressed in the past, this fund can look quite intrepid relative to other high-yield bond funds. Manager Tom Soviero runs a concentrated portfolio, and he'll hold hefty stakes in the lowest-quality issues and equities, making the fund more susceptible to issue-specific credit trouble and general market swings than most. Those risks have taken center stage lately, as weakness in top holdings like Charter Communications  and Six Flags  a slumping stock market, and an overall flight to quality have taken their toll here. Its 5.9% loss for the year through Aug. 15, 2008, ranks behind all but a few peers.

Other factors, including poor manager ownership and an insufficiently independent board, bring its overall grade down to middling territory

Those seeking pure high-yield exposure in a more moderate package should look elsewhere.

Takes on more credit risk than most high-yield offerings, which means it can suffer disproportionately when the high-yield market or the economy weakens. - Morningstar rating: 2 stars

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Harbor International Instl
8.13.2008

Bias toward financial, consumer-goods, and industrial-materials names leads to problems at times. Opportunistic value discipline and blue-chip bias can slow the fund in go-go growth rallies and hard-core smal-cap surges.

Taste for emerging-markets names comes with risks.

Third Avenue Value

Since the spring of 2008, this fund has seen steady shareholder redemptions. Manager Marty Whitman, in fact, reports that many of the fund's recent security sales are to meet redemptions. (He also says that some of the sales are for tax purposes; he is working hard to not pay a capital gain in 2008.)

While we understand that big losses can be tough to handle--the fund's 31% setback for the year to date through Sept. 29, 2008, reaches territory never before seen at this fund-- redemptions today could also prevent the fund from realizing big gains in the future.
Risks:

Stakes in foreign holding companies subject to special tax rules may make this fund less tax-efficient going forward.

Morningstar rating: 3 stars - Expense ratio: 1.08 %

JPMorgan U.S. Real Estate Fund

Specialty-Real Estate

Morningstar rating: 3 stars  -  Beta: 1.43  -  Expense ratio: 0.93 %

FMI Large Cap

The fund is likely to lag its peers during growth-led rallies.

A concentrated portfolio adds to potential risk (holding of 20 stocks)

Morningstar rating: 5 stars, however the expense ratio is 1 %  - current yield a very low 0.88%

Comment: Inception: 2002 – no track record
The fund invests with a long-term outlook, therefore there are no benefits to me.

JPMorgan Highbridge HSKSX

Expense ratio: 1.71 % - Beta: 2.44

Comment:

Inception: 11.30.2005 – no track record

Nuveen Tradewinds Value

Expense ratio: 1.14 – Beta: above average (1year: 1.02 – 3 year 1.31)

The investment seeks long-term capital appreciation. The fund invests primarily in equity securities of companies domiciled in the United States, but may invest up to 35% of assets in U.S dollar denominated equity securities of foreign companies, including up to 10% of the funds assets invested in equity securities of companies domiciled in emerging-markets. 

Comment:

Inception 12.9.2004 – no track record

IShares Tr Russell 1000 Growth

The trust payed too much for it. Yield: 1.44 % - Risk 1.05 Beta

comment:

If you like to take a  risk with an ETF, you may buy some recession proof stocks like

JNJ – Johnson & Johnson, growth and yield are much better than IWF and Beta is only 0.51

SPDR Gold Ttrust EFT
Yield: 0.00 - Comment: The commodity Gold is too speculative and the price could plunge down very quick.