The Trouble with Alpha: Part I20160623124038
The Trouble with Alpha: Part I
Investors equate “alpha” to outperformance. A high alpha fund presumably delivers substantial excess returns relative to its benchmark. True alpha is...
The Rise of Populism and the Fall of Economies20160616163624
The Rise of Populism and the Fall of Economies
Recent election cycles in the U.S. and Europe have seen the ascendance of political parties whose platforms are significantly shaped by populist initi...
Why a ‘Replication’ Strategy Trumps Liquid Alt Funds20160614134722
Why a ‘Replication’ Strategy Trumps Liquid Alt Funds
Catch Andrew Beer interviewed on TheStreet. The liquid alternatives movement is trying to bring hedge fund strategies to ordinary investors. Unfortuna...
Brexit in 10 Days?20160613134124
Brexit in 10 Days?
A new poll from the Bruges Group gives the Leave camp a 19 point lead over Remain. According to the poll, 52% of respondents supported a Brexit, while...
Valeant: Position Crowding, Intrinsic Value – an Update20160608130525
Valeant: Position Crowding, Intrinsic Value – an Update
In January, we wrote a post on Position Crowding and Valeant – the poster child in 2015 for a crowded hedge fund name. One of the points we made was ...
Brexit in 22 Days?20160601165828
Brexit in 22 Days?
A new Guardian poll reveals a 52 – 48 split among Britons in favor of leaving the EU. The alarming result represents a sharp decline in support for th...
Chasing Fund Returns is a Very, Very Bad Idea20160509183323
Chasing Fund Returns is a Very, Very Bad Idea
How does a fund earn over $500 million in management fees yet lose over $1 billion for investors since inception? No, sorry. It’s not a hedge fund. ...
Why Apple is NOT a Top Ten Holding of 93% of Hedge Funds20160308151554
Why Apple is NOT a Top Ten Holding of 93% of Hedge Funds
To infinity and beyond Buzz Lightyear A recent report by Goldman Sachs describes Apple (AAPL) as a “Very Important Position” (top ten holding) ...
Is Warren Buffett a Value Investor?20160229081145
Is Warren Buffett a Value Investor?
The best business to own is one that over an extended period can employ large amounts of incremental capital at very high rates of return. Warr...
When a Client Asks, “What is Brexit?” Here’s Your Quick Guide20160225100755
When a Client Asks, “What is Brexit?” Here’s Your Quick Guide
As we discussed in a post on Market Psychology and the Investor Narrative, the markets get very volatile when a new, large and unfamiliar risk surface...