When to exchange MACGX

[easternjourney]

I purchased MACGX unfortunately when the NAV was up significantly, about 12/2020. It is currently down 74% from my cost basis. Not the only factor that I dislike about the fund. I would like to tap out of that investment for something less volatile (maybe ETF: VB). I'm not exactly sure how to ask this question, but...
...should I sell now and realize the loss to take advantage of gains?
...should I wait for it to recover to a certain point before exchanging?

Historically it has bounced back over a 3-5 year period. I am not sure how to assess whether waiting is better. I need your wisdom.

Thank you.

[retiredjg]

I'd drop it like a hot rock. This is an actively managed (and therefore not tax-efficient) mutual fund with a high expense ratio. No reason to keep it. Waiting for it to "recover" will cost you money in taxes and fees. Might as well benefit from the loss.

Whether you apply the loss against gains or against ordinary income may be a separate question.

[rkhusky]

If you had the money in cash right now, would you buy MACGX? If not, sell it and get the cash. Then buy what you really want. If you decide later that you really want MACGX, you can buy it again 31+ days after the sale (to avoid a wash sale).

[hnd]

There are reportedly some issues going on with Dennis Lynch's team.

I made a CPOAX bet in 2018 when I had no idea what I was doing and I heard him speak on a podcast and thought he was really sharp. I continually invested in it for 3 years. I'd of been better elsewhere. I try and keep my meddling with stuff twice a year and come end of June I'm 99% compelled to be rid of it. I have a handful of active plays just for the giggles of it and know that if I were in the market for active funds in June, CPOAX would not be a consideration at that point, therefore it shouldn't be in my portfolio.

[ruralavalon]

I purchased MACGX unfortunately when the NAV was up significantly, about 12/2020. It is currently down 74% from my cost basis. Not the only factor that I dislike about the fund. I would like to tap out of that investment for something less volatile (maybe ETF: VB). I'm not exactly sure how to ask this question, but...
...should I sell now and realize the loss to take advantage of gains?
...should I wait for it to recover to a certain point before exchanging?

Historically it has bounced back over a 3-5 year period. I am not sure how to assess whether waiting is better. I need your wisdom.

Thank you.

Morgan Stanley Inst Discovery A (MACGX) ER 1.03% has a high expense ratio and has had a dismal performance history.

The fund has a one star rating on Morningstar, a good predictor of future bad performance, link.

Don't wait, get rid of this. Don't fall into the behavioral trap called anchoring, which is "anchor[ing] the value of their investment to the value it once had, and instead of selling it to realize the loss, they take on greater risk by holding it in the hopes it will go back up to its purchase price".