More Cross Market-Momentum

A good article in Forbes magazine this month:Surfin' ETFsI have discussed various cross-market momentum strategies on the blog in the past, and you can view two below:Simple Cross Market MomentumCross-Market Momentum Follow Up (with link to the COP Strategy)The Forbes article features a strategy by Robert Colby. He ranks 200 ETFs on 6-month momentum, and forms portfolios of...

Private Capital

Wow, I sure would like to be invested in Bruce Sherman's Private Capital. Two of his top three holdings are AT (getting bought by TPG/Goldman for $71.50) and MGM (up 30% today on talks with Tracinda). From the Stockpickr description:"Bruce S. Sherman is Chief Executive Officer and Chief Investment Officer of Private Capital Management. He has led...

Digging for Gold in the Stock Market

Our family used to vacation at a beach house on Topsail Island N.C. Edward Teach, aka Edward Drummond, aka Blackbeard, was rumored to frequent the area (he lived in Bath, N.C), and the Wiki entry speaks to the history of its name: "Topsail Island is supposedly derived from its nefarious history. According to popular belief, pirates once hid in the...

Round One Goes to the Hedgies

Now that the 13Fs have been filed with the SEC, it is time to update the Hedge Consensus, Activist Consensus, and Hedge Fund Best Ideas Portfolios. Background on this post can be found in these links:Let Seth Klarman Manage Your PortfolioCloning the Buffett PortfolioConstructing a Best Ideas Hedge FOFShow Me Your Hand - GreenlightBelow is commentary on the...

Presidential Cycle

Interesting article in the FT today regarding the 4 year presidential cycle. "The third years of US presidential terms have been great for investors. Research by academics Scott Beyer, Gerald Jensen and Robert Johnson shows that in the past 12 presidential terms, large-cap stocks gained 23.8 per cent on average during the third years. In years one, two...

On the Way From Amazon

"Capital Ideas Evolving" by Peter Bernstein"The Handbook of Portfolio Mathematics" by Ralph Vinceand this for a (late) Mother's Day present so Mom can have her own Pinkberry in Colorado. . .I'm also enjoyed this paper by Harry Kat, "Alternative Routes to Hedge Fund Replication" (PS I am convinced Dr. Kat is a robot - look at all of...

Hulbert Trendfollowing Article

In his recent column, "Reports of it's Demise Were Premature", Mark Hulbert examines the historical track record of the 39-week moving average:The study was conducted by Ned Davis Research for Israel-based Psagot Mutual Funds, which shared the study with me. The study encompassed the period from late 1979 and until last week, over which time buying and holding the...

Let Seth Klarman Manage Your Portfolio

Seth Klarman is profiled in this recent article from the NYTimes titled, "Manager Frets Over the Market, but Still Outdoes It". Klarman returned 22% last year while holding HALF his portfolio in cash. From the NYT article:Mr. Klarman’s record has generated intense loyalty from investors. Since he began Baupost in 1983, it has posted an average annual total...

The Apprentice – Omaha

If you haven't heard, Warren Buffett (76) is beginning the process of finding and grooming his replacement. In the Berkshire Hathaway annual letter to shareholders, Buffet states:"At our October board meeting, we discussed that subject fully," Buffett said. "And we emerged with a plan, which I will carry out with the help of Charlie and Lou. Under this...

The Little Stock that Beats the Market

Back in early February I penned a post focusing on the methodology of Joel Greenblatt, author of "The Little Book That Beats the Market" and manager of super-successful hedge fund Gotham Partners. At the time Greenblatt only owned 4 stocks, and his sister (who runs Saddle Rock) only owned two. Between the two of them, the Greenblatt's...