Bulletin
Investor Alert

London Markets Open in:

Philip van Doorn

Deep Dive Archives | Email alerts

March 18, 2020, 7:35 a.m. EDT

These three stock funds are holding up better than the overall market amid the coronavirus crash

Stock market turmoil underlines the idea that you should be diversified beyond index funds

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    SPDR S&P 500 ETF Trust (SPY)
  • X
    S&P 500 Index (SPX)
  • X
    Permanent Portfolio;I (PRPFX)

or Cancel Already have a watchlist? Log In

By Philip van Doorn, MarketWatch

1 2


Permanent Portfolio Family of Funds

Here are the fund’s top 10 holdings as of Dec. 31, which made up 50% of the portfolio:

Share of portfolio
Gold Bullion 13.30%
Gold Coins 9.20%
Silver bullion 5.87%
2.00% Swiss Confederation bonds maturing April 28, 2021 3.89%
2.25% Swiss Confederation bonds maturing July 6, 2020 3.81%
Texas Pacific Land Trust 3.14%
U.S. Treasury Bonds, 5.25%, maturing Nov. 15, 2028 2.97%
US. Treasury Bonds, 6.00%, maturing Feb. 15, 2026 2.90%
Freeport McMoRan /zigman2/quotes/200215692/composite FCX 2.72%
Facebook, Class A /zigman2/quotes/205064656/composite FB 2.66%
Source: FactSet

Plumb Balanced Fund

Tom Plumb, CEO of Wisconsin Capital Management and manager of the Plumb Balanced Fund, believes the technological trends that propelled the broad U.S. stock market over the past decade will only be magnified by the coronavirus crisis. The fund has $95 million in assets and is rated five stars (the highest rating) by Morningstar.

“You are going to continue to see simulation technology, AI [artificial intelligence], so many things that are more efficient and adding to ways people can work separately. You will see more things on the cloud, more video conferencing and less travel,” he said during an interview March 16.

He sees Nvidia /zigman2/quotes/200467500/composite NVDA +3.49%  (which is held by the Plumb Balanced Fund), Advanced Micro Devices /zigman2/quotes/208144392/composite AMD +0.94%  and Intel /zigman2/quotes/203649727/composite INTC +0.51%  as solid long-term investments through the continuing tech trend. He added: “Companies like Adobe /zigman2/quotes/200389143/composite ADBE +1.85%  have had an incredible run for their business model, and it will continue to accelerate. People will file documents electronically.”

He also said: “If you don’t own Mastercard /zigman2/quotes/207581792/composite MA +0.21%  and Visa /zigman2/quotes/203660239/composite V +0.45% , I think you should be stepping in and buying them.”

Here are the top 10 equity holdings of the Plumb Balanced Fund as of Dec. 31:

Company Ticker Share of portfolio
Visa Inc. Class A /zigman2/quotes/203660239/composite V 3.2%
Mastercard Inc. Class A /zigman2/quotes/207581792/composite MA 2.9%
Microsoft Corp. /zigman2/quotes/207732364/composite MSFT 2.7%
Lockheed Martin Corp. /zigman2/quotes/200691238/composite LMT 2.5%
Alibaba Group Holding Ltd. ADR /zigman2/quotes/201948298/composite BABA 2.4%
American Express Co. /zigman2/quotes/203805826/composite AXP 2.4%
WEX Inc. /zigman2/quotes/204805169/composite WEX 2.4%
Discover Financial Services /zigman2/quotes/208747867/composite DFS 2.4%
Amazon.com Inc. /zigman2/quotes/210331248/composite AMZN 2.4%
PayPal Holdings Inc. /zigman2/quotes/208054269/composite PYPL 2.3%
Source: Plumb Funds

First Eagle Global Fund

Back in September, Kimball Brooker of First Eagle Investment Management said: “What you don’t own in a portfolio can be more helpful than what you own.”

Brooker is the deputy head of First Eagle’s global value team and a manager of the $37 billion First Eagle Global Fund, which has a four-star rating from Morningstar. During an interview on March 13, he said “some sectors that we don’t really own at the moment have been finding themselves in trouble, such as the banks in Continental Europe or the banks in China, which are now having to deal with a reset of their own and global rate environments.”

“What is helpful to us is not owning businesses with too much leverage and owning businesses with a reasonable level of predictability,” he added.

When asked if the fund had made any early moves after word of the coronavirus was out, but before the February stock rout or oil-price collapse, Brooker said: “What tends to happen and what has kept us out of trouble is there are always pockets of the market filled with euphoria. Usually those are too expensive for us, so we avoid getting into trouble.”

Here’s the fund’s broad asset allocation as of Feb. 29:

  • Non-U.S. stocks: 35.67%

  • U.S. stocks: 33.91%

  • Gold bullion: 10.49%

  • Gold-mining companies: 4.44%

  • International currency bonds: 1.66%

  • U.S. dollar bonds: 0.01%

  • Cash and equivalents: 13.81%

Here are the fund’s top 10 holdings as of Feb. 29:

Ticker Share of portfolio
Gold Bullion 10.49%
Oracle Corp. /zigman2/quotes/202180826/composite ORCL   2.28%
Comcast Corp. Class A /zigman2/quotes/209472081/composite CMCSA   2.00%
Exxon Mobil Corp. /zigman2/quotes/204455864/composite XOM   1.95%
British American Tobacco PLC /zigman2/quotes/209116881/delayed UK:BATS   1.61%
Weyerhaeuser Co. /zigman2/quotes/200438029/composite WY   1.53%
Fanuc Corp. /zigman2/quotes/202054799/delayed JP:6954   1.48%
Philip Morris International Inc. /zigman2/quotes/201611010/composite PM   1.42%
Sompo Holdings Inc. /zigman2/quotes/201620552/delayed JP:8630   1.35%
Danone S.A. /zigman2/quotes/205561941/delayed FR:BN   1.32%
Source: First Eagle Investment Management

Don’t miss: Bank stocks look like bargains and their dividends are safe, these analysts say

/zigman2/quotes/200215692/composite
US : U.S.: NYSE
$ 12.82
+0.09 +0.71%
Volume: 22.61M
July 8, 2020 4:02p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$18.48 billion
Rev. per Employee
$707,724
loading...
/zigman2/quotes/205064656/composite
US : U.S.: Nasdaq
$ 243.58
+2.72 +1.13%
Volume: 29.79M
July 8, 2020 4:00p
P/E Ratio
33.38
Dividend Yield
N/A
Market Cap
$686.78 billion
Rev. per Employee
$1.57M
loading...
/zigman2/quotes/200467500/composite
US : U.S.: Nasdaq
$ 408.64
+13.77 +3.49%
Volume: 9.14M
July 8, 2020 4:00p
P/E Ratio
76.31
Dividend Yield
0.16%
Market Cap
$242.85 billion
Rev. per Employee
$882,428
loading...
/zigman2/quotes/208144392/composite
US : U.S.: Nasdaq
$ 53.43
+0.50 +0.94%
Volume: 35.61M
July 8, 2020 4:00p
P/E Ratio
128.93
Dividend Yield
N/A
Market Cap
$61.99 billion
Rev. per Employee
$641,089
loading...
/zigman2/quotes/203649727/composite
US : U.S.: Nasdaq
$ 58.61
+0.30 +0.51%
Volume: 13.28M
July 8, 2020 4:00p
P/E Ratio
11.35
Dividend Yield
2.25%
Market Cap
$246.88 billion
Rev. per Employee
$659,665
loading...
/zigman2/quotes/200389143/composite
US : U.S.: Nasdaq
$ 457.68
+8.32 +1.85%
Volume: 2.00M
July 8, 2020 4:00p
P/E Ratio
60.36
Dividend Yield
N/A
Market Cap
$215.54 billion
Rev. per Employee
$445,024
loading...
/zigman2/quotes/207581792/composite
US : U.S.: NYSE
$ 300.15
+0.64 +0.21%
Volume: 4.12M
July 8, 2020 4:00p
P/E Ratio
38.40
Dividend Yield
0.53%
Market Cap
$301.12 billion
Rev. per Employee
$1.01M
loading...
/zigman2/quotes/203660239/composite
US : U.S.: NYSE
$ 195.07
+0.87 +0.45%
Volume: 8.37M
July 8, 2020 4:00p
P/E Ratio
36.06
Dividend Yield
0.62%
Market Cap
$413.46 billion
Rev. per Employee
$1.25M
loading...
/zigman2/quotes/203660239/composite
US : U.S.: NYSE
$ 195.07
+0.87 +0.45%
Volume: 8.37M
July 8, 2020 4:00p
P/E Ratio
36.06
Dividend Yield
0.62%
Market Cap
$413.46 billion
Rev. per Employee
$1.25M
loading...
/zigman2/quotes/207581792/composite
US : U.S.: NYSE
$ 300.15
+0.64 +0.21%
Volume: 4.12M
July 8, 2020 4:00p
P/E Ratio
38.40
Dividend Yield
0.53%
Market Cap
$301.12 billion
Rev. per Employee
$1.01M
loading...
/zigman2/quotes/207732364/composite
US : U.S.: Nasdaq
$ 212.83
+4.58 +2.20%
Volume: 33.60M
July 8, 2020 4:00p
P/E Ratio
35.44
Dividend Yield
0.96%
Market Cap
$1579.25 billion
Rev. per Employee
$902,473
loading...
/zigman2/quotes/200691238/composite
US : U.S.: NYSE
$ 350.23
-3.04 -0.86%
Volume: 1.97M
July 8, 2020 4:02p
P/E Ratio
15.90
Dividend Yield
2.74%
Market Cap
$99.07 billion
Rev. per Employee
$512,019
loading...
/zigman2/quotes/201948298/composite
US : U.S.: NYSE
$ 257.68
+21.17 +8.95%
Volume: 39.92M
July 8, 2020 4:00p
P/E Ratio
32.03
Dividend Yield
N/A
Market Cap
$643.57 billion
Rev. per Employee
$781,259
loading...
/zigman2/quotes/203805826/composite
US : U.S.: NYSE
$ 92.90
-0.11 -0.12%
Volume: 6.38M
July 8, 2020 4:02p
P/E Ratio
14.08
Dividend Yield
1.85%
Market Cap
$74.87 billion
Rev. per Employee
$733,559
loading...
/zigman2/quotes/204805169/composite
US : U.S.: NYSE
$ 158.06
+1.35 +0.86%
Volume: 463,156
July 8, 2020 4:00p
P/E Ratio
104.39
Dividend Yield
N/A
Market Cap
$6.82 billion
Rev. per Employee
$403,416
loading...
/zigman2/quotes/208747867/composite
US : U.S.: NYSE
$ 48.68
+0.53 +1.10%
Volume: 3.48M
July 8, 2020 4:00p
P/E Ratio
7.29
Dividend Yield
3.62%
Market Cap
$14.75 billion
Rev. per Employee
$773,916
loading...
/zigman2/quotes/210331248/composite
US : U.S.: Nasdaq
$ 3,081.11
+80.99 +2.70%
Volume: 5.04M
July 8, 2020 4:00p
P/E Ratio
147.18
Dividend Yield
N/A
Market Cap
$1496.39 billion
Rev. per Employee
$359,671
loading...
/zigman2/quotes/208054269/composite
US : U.S.: Nasdaq
$ 181.57
+4.29 +2.42%
Volume: 7.23M
July 8, 2020 4:00p
P/E Ratio
114.90
Dividend Yield
N/A
Market Cap
$208.16 billion
Rev. per Employee
$710,138
loading...
/zigman2/quotes/202180826/composite
US : U.S.: NYSE
$ 56.66
+0.35 +0.62%
Volume: 12.58M
July 8, 2020 4:02p
P/E Ratio
18.33
Dividend Yield
1.69%
Market Cap
$172.80 billion
Rev. per Employee
$289,197
loading...
/zigman2/quotes/209472081/composite
US : U.S.: Nasdaq
$ 39.74
-0.33 -0.82%
Volume: 12.54M
July 8, 2020 4:00p
P/E Ratio
15.75
Dividend Yield
2.32%
Market Cap
$182.89 billion
Rev. per Employee
$513,625
loading...
/zigman2/quotes/204455864/composite
US : U.S.: NYSE
$ 43.14
-0.10 -0.23%
Volume: 18.29M
July 8, 2020 4:02p
P/E Ratio
16.20
Dividend Yield
8.07%
Market Cap
$182.83 billion
Rev. per Employee
$3.93M
loading...
/zigman2/quotes/209116881/delayed
UK : U.K.: London
3,048.50 p
-16.50 -0.54%
Volume: 2.24M
July 8, 2020 4:35p
P/E Ratio
12.24
Dividend Yield
6.90%
Market Cap
£70.06 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/200438029/composite
US : U.S.: NYSE
$ 22.67
+0.47 +2.12%
Volume: 4.24M
July 8, 2020 4:00p
P/E Ratio
46.64
Dividend Yield
0.00%
Market Cap
$16.57 billion
Rev. per Employee
$803,871
loading...
/zigman2/quotes/202054799/delayed
JP : Japan: Tokyo
¥ 19,630.00
+310.00 +1.60%
Volume: 657,400
July 9, 2020 3:00p
P/E Ratio
51.42
Dividend Yield
N/A
Market Cap
¥3707.06 billion
Rev. per Employee
¥95.87M
loading...
/zigman2/quotes/201611010/composite
US : U.S.: NYSE
$ 72.30
-0.64 -0.88%
Volume: 7.50M
July 8, 2020 4:00p
P/E Ratio
14.74
Dividend Yield
6.47%
Market Cap
$113.58 billion
Rev. per Employee
$382,519
loading...
/zigman2/quotes/201620552/delayed
JP : Japan: Tokyo
¥ 3,676.00
-7.00 -0.19%
Volume: 1.06M
July 9, 2020 3:00p
P/E Ratio
11.03
Dividend Yield
4.35%
Market Cap
¥1361.10 billion
Rev. per Employee
¥71.58M
loading...
/zigman2/quotes/205561941/delayed
FR : France: Euronext Paris
60.70
-0.56 -0.91%
Volume: 1.56M
July 8, 2020 5:35p
P/E Ratio
20.57
Dividend Yield
3.46%
Market Cap
€39.75 billion
Rev. per Employee
€233,034
loading...

Philip van Doorn covers various investment and industry topics. He has previously worked as a senior analyst at TheStreet.com. He also has experience in community banking and as a credit analyst at the Federal Home Loan Bank of New York.

1 2
This Story has 0 Comments
Be the first to comment
More News In
Investing

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.