Gyroscopic Investing

Anyone concerned that PRPFX use a very small accounting firm to audit the fund. With a fund as large as PRPFX shouldn't they be using a big 4 accounting firm?

Didn't Enron use a big 4 accounting firm?

I get that but Madoof used a very small one

Cuggino is a former E&Y auditor.

julian wrote: Anyone concerned that PRPFX use a very small accounting firm to audit the fund. With a fund as large as PRPFX shouldn't they be using a big 4 accounting firm?

That's the one thing that concerns me with my wife's and sister's 401k funds entirely in PRPFX.  Fraud could put a big hurting on them, which would put a big hurting on me.  Unfortunately, I have no other alternatives for constructing a PP within their 401k universe.  Just cross the fingers and hope for the best.

As a CPA, Cuggino knows that the Big Four brand means almost nothing (EY was Lehman's auditor).

He's probably just trying to get a better deal for the fund.

Why would Cuggino mess up a good thing for himself by fudging the fund's numbers?  These are the best market conditions for PRPFX's assets in the fund's history.

I wouldn't worry about this issue.

Wonk wrote:

julian wrote: Anyone concerned that PRPFX use a very small accounting firm to audit the fund. With a fund as large as PRPFX shouldn't they be using a big 4 accounting firm?

That's the one thing that concerns me with my wife's and sister's 401k funds entirely in PRPFX.  Fraud could put a big hurting on them, which would put a big hurting on me.  Unfortunately, I have no other alternatives for constructing a PP within their 401k universe.  Just cross the fingers and hope for the best.

for me, leaving employer after 10 years & converting 401k to roth ira has been tremendous...near total control...more than doubled the ira in just a few years (yeah...risky VP stuff...so far, so good)

How can I as an invester in PRPFX be sure that the assets listed (stocks, bonds, etc) are really in the fund. I think the same thoughts on all funds and ETFs. Anyone know for sure or are we to believe the Auditors?

BRESLOW wrote: How can I as an invester in PRPFX be sure that the assets listed (stocks, bonds, etc) are really in the fund. I think the same thoughts on all funds and ETFs. Anyone know for sure or are we to believe the Auditors?

How can you be sure of anything in life?

How do we know for sure we aren't just xs and os in the Matrix?

Based upon the totality of circumstances surrounding PRPFX, which is a combination of the auditor's report, the SEC filings, my perception of Cuggino's integrity, my knowledge of the history of the fund, and my calculations of what the fund's performance should be based upon what its constituent assets are doing, I believe that the fund owns the assets it says it does.

At a certain point I think you have to take a calculated leap of faith in certain areas of life.

MT. Thanks for your response, I am going to go all in, half in PRPFX and the other half in 4X25. I,m sleeping better already.

I suppose anything could happen, but this is not something I'd spend much time worrying about.  I have followed this fund for many years.  I can't see how anyone at the fund would benefit from false accounting.  They have way too much to gain from playing everything straight.