Billionaire Seth Klarman's investing philosophy has been in something of a rut for years.
In his letter to investors at the beginning of this year, he said that "short-term market gyrations matter little unless one wishes to – or is forced to – transact."Value investing appears to be slowly returning to favor for hedge fund managers, as Seth Klarman has predicted all along. "Sometimes, the market tells you one story, even as the performance of the underlying businesses tells you another. This is the case with many 'value equities' today, which have been significantly underperforming the market even as operating cash flows are strong," he wrote to investors.
Cliff Asness, the billionaire founder of AQR and legendary momentum trader, even posted a trolling blog on the hedge fund's site on Feb. 27, styled off of Abraham Lincoln's Gettysburg Address. "We have always been more comfortable owning value stocks because they are typically less exposed to rapid technological change and obsolescence and also have greater valuation support based on near-term cash flows. While this strategy has delivered good returns for investors over long periods, it has also gone through extended periods of underperformance, including the last ten years," the Mangrove Partners letter said.
To be sure, some see cracks of light appearing at the end of the tunnel for Klarman and his disciples who have stuck with it through the stubborn bull market.
Ireland Ireland Latest News, Ireland Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: BusinessInsider - 🏆 729. / 51 Read more »
Stock market investing strategy, outlook for coronavirus: 8 experts - Business Insider8 of Wall Street's top minds weigh in on whether the market will recover from coronavirus chaos — or if the global economy will be thrown into recession
Source: BusinessInsider - 🏆 729. / 51 Read more »
PRESENTING: Top apps, books, habits, and podcasts for small businesses - Business InsiderThe finalists of Amazon's small business of the year awards told us what apps, books, habits, and podcasts help them be better entrepreneurs.
Source: BusinessInsider - 🏆 729. / 51 Read more »
How political organizing helped a business coach make 6 figures - Business InsiderHow a decade spent as a political organizer, including knocking on doors and making hundreds of calls, helped this business coach grow her own company to 6 figures in just 2 years (by EntryLevelRebel)
Source: BusinessInsider - 🏆 729. / 51 Read more »