Barton Biggs passed away on Saturday after a short illness. Every aspiring hedge fund manager should read his book Hedgehogging, which was published in 2006. You can find it in the book store above. Having just skimmed my marked up copy to prepare for this post, I am compelled to read it again. I launched my fund four years after I read it.
In… Continue reading
I met Simon Caufield at the 2011 CFA Institute (CFAI) Annual Conference in Edinburgh. The CFAI was experimenting with a social media app for the conference and asked Annual Conference Advisory Board members to “seed” discussions on the app. My interest is in value investing so naturally I asked attendees if any were dedicated value investors and would they be interested in meeting over a meal. It turned… Continue reading
Jason Zweig wonders whether undisclosed skin-in-the-game is a good thing. Can disclosure alone cure a real conflict of interest? Mutual fund managers wrestle with these issues but are usually criticized for having little or no skin in the game. Hedge fund managers must invest side-by-side with their limited partners, so there is less conflict than the one Jason writes about in the attached column–a large investment outside of the… Continue reading
I have always struggled with feelings of guilt; maybe it is my Catholic upbringing. In my mind, at least, I bend over backwards to ensure that people feel that I am treating them fairly and if there is any question in their minds, I feel terrible. Many have used that against me, but usually only once. Knowing that I am vulnerable that way, I give few second chances.
In fact… Continue reading
I was alerted to this post by a friend on Facebook. It points to a New York Times article on pension robbing.
Public Pension Ponzi Scheme; New York Cities Borrow From Pension Plan to Make Contributions.
The definition of Financial Repression:
Several measures that governments employ to channel funds to themselves, that, in a deregulated market, would go elsewhere.… Continue reading
It is likely only a matter of “when” it bursts, not “if.” The attached is an excellent analysis. This is just one of many grey swans on the pond.
Five Perspectives on China’s “Investment Bubble” | Enterprising Investor
The whole letter can be found in the Berkshire Hathaway link to the right.
…The second major category of investments involves assets that will never produce anything, but that are purchased in the buyer’s hope that someone else – who also knows that the assets will be forever unproductive – will pay more for them in the future. Tulips, of
Events that can have a significant impact on the economy and capital markets have become known as swans of various shades thanks largely to Nassim Taleb’s book, The Black Swan, in which Taleb reminded us of Karl Popper’s criticism of inductive proof in science. A black swan (per Taleb) is an unanticipated, rare event. A grey swan (per many), is an unlikely event that is only minimally anticipated.
The best… Continue reading
