Dalio: Conflict Gauge Highest Since WWII

Ray Dalio, the founder of Bridgewater Associates, said a gauge his firm created to measure the level of global conflict is at its highest level in more than 70 years, according to an article in Bloomberg. In an interview with CNN, Dalio said, “There is more polarity, more conflict internally, of a sort.” In 2017, Dalio warned that populism will be a more powerful force than monetary or fiscal policies, the article reports, with politics… Read More

What Investors Value in Managers

A new study from Chestnut Advisory Group shows that a fund manager’s ability to earn investor trust is more important than their track record, according to a recent article in Institutional Investor. Chestnut CEO and founder Amanda Tepper said, “Capital flows are all about people,” adding that investors are “not buying a risk-return stream, they are entering into a relationship with you.” According to the study, the top factors for investors when choosing an asset… Read More

Most Read Posts on Validea’s Guru Investor

Below are links to our most popular posts for this week on Validea’s Guru Investor blog.- [1] The Case Against Value Stocks [2] Seth Klarman’s Bleak Warning Chills Davos [3] 2019 Predictions Will Miss the Mark, or Worse [4] Joel Greenblatt Likes Companies That Gush Cash ——- Photo: Copyright: arcady31 / 123RF Stock Photo

Bridgewater and Renaissance Earn $13 billion for Investors

The profits generated by Ray Dalio’s Bridgewater Associates and Jim Simons’ Renaissance Technologies “beat their rivals in a tough year for hedge funds in 2018, making a combined $13 billion for their investors.” This according to a recent article in Bloomberg. “The profits accounted for more than half the money generated by the top 20 managers last year,” the article reported (based on estimates by LCH Investments NV, a fund of hedge funds). Rick Sopher,… Read More

Jain’s Stock Buy a Bullish Sign for Berkshire Shares

A recent Barron’s article characterized last month’s “outsized” purchase of $19.9 million shares of Berkshire Hathaway common A shares by the company’s vice chairman Ajit Jain as a bullish sign for the stock. It says that the “veteran insurance mastermind” Jain seemed to be taking advantage of a 12% decline in Berkshire class A shares from their October high of around $336,000, when he paid an average of $296,515 for 67 shares, the article notes.… Read More

Rob Arnott on Quant Investing: Opportunities and Pitfalls

In a podcast interview last month with the Investment Innovation Institute, Research Affiliate’s Rob Arnott discussed a range of issues related to factor investing, quant strategies and research with host Daniel Grioli. Here are some highlights: “There are no bargains in the absence of fear, and fear is usually rooted in a narrative of things that could go wrong,” says Arnott, adding that opportunities present themselves in stocks that are out-of-favor, unloved and have inflicted… Read More

Seth Klarman’s Bleak Warning Chills Davos

In his 22-page annual letter to investors, Baupost Group’s Seth Klarman warned that increasing political and social tensions around the globe may end in an economic disaster. This according an article in The New York Times that describes the letter as a “warning shot.” “It can’t be business as usual amid constant protests, riots, shutdowns and escalating social tensions,” Klarman wrote in the letter, which was reportedly shared during the annual meeting of the World… Read More

Jack Bogle’s Legacy: The Cost Matters Hypothesis

A recent article in Forbes describes the late John Bogle as “dogmatic and rigid” and a “sanctimonious scold.” But, it adds, “he was right.” Referring to Bogle as the “titan of low-cost investing,” the article offers an overview of his long and fascinating career and his consistent preaching that investing costs matter, more than past performance. Bogle’s thesis—that if you hire a money manager to beat the market (paying fees whether or not they do)—eventually… Read More

Joel Greenblatt Likes Companies That Gush Cash

In a Bloomberg interview with host Erik Schatzker, Gotham Asset Management co-chief investment officer Joel Greenblatt talked about his value investing approach. Greenblatt explained that his firm doesn’t focus on price-earnings ratio but rather on a company’s cash flow—and that they evaluate all S&P 500 companies “bottoms up” using data going back to 1990. He said, “we can actually contextualize where we stand today, according to how we value companies” (using absolute and relative value… Read More

Zweig on Investing and Socializing

Wall Street Journal columnist Jason Zweig reported that newly released data from Riskalyze (a California-based firm) reveals state-by-state patterns in investor risk tolerance—using responses from more than 458,000 clients of about 22,000 financial advisers (responses were scored on a scale of 20 to 90, with 20 representing the lowest tolerance). “Perhaps unsurprisingly,” wrote Zweig, “New Yorkers scored near the top, at 85,” topped only by Nebraskans (90), with residents of New Jersey, Florida, and New… Read More