Editor’s note: As of 9/20/11 Lucas Krupinski no longer manages a Covestor model
In the December 2010 investment report for his Small Cap Fundamentals model, Lucas Krupinski had this to say about his portfolio and his source of investing know-how:
The two people I look to the most in terms of gleaning knowledge of the investment world are Warren Buffett and David Swensen (the man who manages Yale’s endowment). To that end, I’ve been constructing a portfolio that I feel illustrates what I’ve learned from the words and writings of the two of them.
In January, Krupinski added Invesco Van Kampen Municipal Trust (VKQ) to the model. The goal of VKQ is to provide a high level of income that is exempt from federal income tax, though it could still present some exposure to state income taxes depending on the underlying securities present and the investor’s state of residence.
One major concern about bond funds is that many cities and states in the U.S. may be at risk for defaulting on muni bonds in 2011 and future years. But some believe that that concern is overstated and that there is much to be gained from investing in funds holding muni bonds like VKQ. On January 19th, according to Morningstar.com, VKQ was trading below NAV.
*VKQ performance chart courtesy of Yahoo Finance.