When the year started I suggested to a number of people with a willingness to step outside of the box that a local, young, unproven investment manager was worth considering. Not merely because he was talented or that the funds strategy was fundamentally sound, but because he had a particularly attractive opportunity set in...
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HG Wells can be bought cheap, but fixing Europe will not be and we have the cocktails to take you through it...
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In a very "outside the box" essay, JJ Abodeely looks at how experience can be detrimental to investment advice. This is a nice compliment to last weeks "Mad Men and Risk Control" as we continue to look at how our instincts can fool us into misunderstanding how and where to deploy our money.
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Ray Dalio and Bridgewater continue to make money, regardless of market direction. Download article as PDF
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Despite recent struggles, hedge funds have done relatively well. Why? One recent study shows they can (despite academic claims that you can’t) reduce their exposure to market risk, and increase it, in ways that adds to return. Who wudda thunk it? Download article as PDF
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Bad news for the monolines. FGIC just got downgraded today to AA. That pretty much puts them out of the business of insuring municipal bonds. NYS Commissioner of Insurance has suggested splitting the Muni bond business from the rest of the insurers. FGIC seems to now think that isn’t a bad idea. Of course,...
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The recent downturn from the high in October has led to a great deal of chatter about the markets being cheap. That the recent turmoil has presented us with wonderful buying opportunities based on valuation. Readers here know that I disagree, and vehemently. Which doesn’t mean there isn’t money to be made as speculators....
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Julian Robertson has sired a slew of top managers, of whom we are very fond, and they are in hedge fund heaven right now as dispersion in returns is giving them ample opportunity to make some hay. Fortune has an article which helps those who have fallen behind catch up on what Julian and...
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Index investing is often described as “passive” or “beta” investing. However, one thing that is often looked past is exactly how active the construction process of indexes is in practice. Steve Galbraith used to say when I, and he, was with Morgan Stanley (before he went to manage money with Maverick Capital) that buying...
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Finally it is the long-term investor, he who most promotes the public interest, who will in practice come in for most criticism, wherever investment funds are managed by committees or boards or banks. For it is in the essence of his behaviour that he should be eccentric, unconventional and rash in the eyes of...
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Morningstar takes a look at the Long/Short category of mutual funds. They, like I, appreciate John Hussman. China turned in yet another double digit year: China’s economy grew by 11.4 per cent in 2007, the highest pace in 13 years, but the trend of decelerating exports to a slowing US recorded in the final...
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All About Alpha looks askance at misleading headlines. Download article as PDF
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For investors with the assets to use a full fledged fund of hedge funds, who do we turn to? A collection of Tiger Cubs who had a fine year, so this does not surprise us. From Bloomberg: Hedge-fund managers known as the Tiger Cubs because they learned to pick stocks at Julian Robertson’s Tiger...
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A survey of All About Alpha’s top posts of 2007. Recommended reading by me as well. Download article as PDF
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An academic attempt to passively replicate hedge fund returns was a good news/bad news story. They did beat the indexes, they didn’t beat actual hedge funds. (H/T: Abnormal Returns) Download article as PDF
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