Below are links to our most popular posts for this week on Validea’s Guru Investor blog. [1] Some Thoughts On Improving the Predictive Value of Morningstar’s Ratings [2] Klarman Warns that Investors…
The Biggest Failure of the Investment Management Industry
By Jack M. Forehand (@practicalquant) — The investment management business has improved dramatically in the past twenty years. The days of brokers selling high priced products to unsuspecting consumers that…
Peter Lynch Protégé Says "Stocks are Fine Today"
Jeff Vinik, who ran Fidelity’s famed Magellan Fund from 1992 until before he left the firm in 1996, became well known for his aggressive investing style, according to a recent…
Ackman Efforts to Boost Pershing Share Price May Not Work
Since May, Bill Ackman’s hedge fund has bought back more than 2.8 million shares of the publicly-traded version of its investment fund, according to a recent Bloomberg article, “essentially taking…
Can Behavioral Economics Be a Channel to Profits?
Psychological biases lead to market overreaction and underreaction, and it can be difficult to discern which is happening at any given point, according to a recent article in Bloomberg. “For…
Lessons Learned from 1929 Crash Predictions
In a 1929, pre-crash speech, esteemed economist Irving Fisher became notorious for declaring that U.S. stock prices had reached “what looks like a permanently high plateau,” writes Jason Zweig of…
Einhorn Says Value Investing Will See Comeback
Value investing is in the doldrums, but billionaire fund manager David Einhorn says that eventually things will turn around. This according to a recent CNBC interview. Einhorn argues that the last…
Tech Sector Heavy Hitters: The Only Market Constant is Change
By John Reese (@guruinvestor) — There are precious few certainties when it comes to the stock market, but there’s one that should be written in permanent ink and glued to…
For Hedge Funds, Being Like Buffett Isn't Easy
While Warren Buffett’s track record is appealing to large private equity firms, his buy-and-hold strategy (averaging 10-20 years rather than the hedge fund industry norm of 3-5 years) can be…
Bloomberg's Kaissar Weighs-In on Morningstar Fund Ratings
In a recent article, Bloomberg columnist Nir Kaissar challenges the rationale of a Wall Street Journal article suggesting that Morningstar mutual fund ratings lead investors to “assume erroneously” how those…