Tag Archives: Conventional Professional Investors

Just What is Seth Klarman up to? It May not be What Optimists Believe

Apparently, Seth Klarman is in the market for capital. This is always news because Klarman has a reputation for shunning capital from new investors and frequently returning excess capital to existing investors. However, the author of the attached story has … Continue reading

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Why All the Cheer?

I am an optimist by nature, and I hope a rational one in the Matt Ridley vein. But, I do not understand the optimism in the market in the last seven trading days (plus forty-five minutes). Markets are up over … Continue reading

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Many Well Known Hedge Funds are Having Bad Years

Where’s the hedging?… With data flowing in now, it is apparent that a large number of hedge funds are in the red this year and several dozen are down by double-digit rates. They include many well-known names that run billions … Continue reading

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Excellent George Will Column on the Hyperactive Regulatory Environment

I found out last week that in my industry, the new Dodd-Frank law says that if I decide to manage investments in separately managed accounts (SMA) for my investors in addition to the private investment fund that I currently manage, it will trigger … Continue reading

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Another Great One by James Montier

Read the whole thing: http://www.ft.com/intl/cms/s/0/77f0077c-c35a-11e0-9109-00144feabdc0.html#axzz1YtylE6lL “…there is a simple, although not easy…alternative (to  benchmark-focused investing)…use a value approach across a wide range of assets. Buy when an asset is cheap, and sell when an asset gets expensive – buy low and … Continue reading

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The Investing World’s Reaction to Buffett’s Hiring of Richard “Ted” Weschler

I am surprised at the reaction among investors and the media over Buffett’s selection of Ted Weschler as one of his portfolio management successors, but I suppose I should be used to it by now. The general reaction has been: … Continue reading

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Market Valuation, Deus Ex Machina, and Volatility

We have written several times to say that the market in general is overvalued based on earnings (the CAPE) and book value (Tobin’s Q). Even after the recent selloff, the market is still well above long-term averages. However, astute market … Continue reading

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Whitney Tilson Had a Bad Month and is Having a Bad Year

I am somewhat surprised by this because I thought he was less than 50% net long. (Correction: Tilson made changes to the fund in August which resulted in the fund being 70% net long).  Covering his NFLX short may have hurt … Continue reading

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I am a Proud Member of the “I Don’t Know” School

I read the following in Howard Marks’s latest book (p. 138):  “Since the investors of the ‘I Know’ school, described in chapter 14, feel it’s possible to know the future, they decide what it will look like, build portfolios designed … Continue reading

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NFLX Getting “Hammered” After Hours; Is this the Walk of Shame?

We doubt that missing revenue forecasts by less than 1% is legitimate reason for hammering a stock, especially when its earnings beat by a fair amount. No, it looks more like the morning after an NFLX investor party. At the … Continue reading

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