Gyroscopic Investing

I have had holdings in VWIAX, Vangurd Wellesley Admiral Fund, for a while. This last week as the Greek debt unfolded and refolded, I sent in an inquiry via their secure email, asking what the exposure of this fund was to Greek and other Euro debt. After one day more than their committed response time, I called, and asked why I had not received an answer, citing VWAIX holdings in US bank bonds from BofA and others, including HSBC.

Sadly they were not encouraging. The agent I spoke to, who was very earnest, put me on hold several times, and finally responded, that my request was out of the norm, very sophisticated, and they would need another week or two to respond.

I told the earnest young man, "Thank you very much, I think you have given me the answer I was seeking." He asked me if I needed any help liquidating my holdings. I told him no I could take care of it myself...

So now, I am "all in" with the HBPP, as soon as I can move the proceeds from VWIAX, which will be tomorrow.

S

So you're trading in your linen pants for a proper set of chaps.

Good for you.

I think in fact it is a difficult question for them to answer. For instance, if they hold some commercial paper from Bank XYZ, they need to call up Bank XYZ and find out what the exposure is. Chances are that even most representatives from Bank XYZ have no idea how much sovereign CDS exposure they have and how much it is leveraged. Even plain vanilla money market funds suffer from this.

Kudos on your decision. The HBPP is very appealing in terms of minimizing one's credit risk.

MediumTex wrote: So you're trading in your linen pants for a proper set of chaps.

Good for you.

Yes, indeed, I have done. As long as there are some pockets in those chaps for precious metal coins and other items of importance