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Value Investors Struggle – What Happened?

Value Investors

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Q2 hedge fund letters, conference, scoops etc

IWY “Value” shares (Brown line) vs. IWF “Growth” shares

Value Investors

What is going on? https://www.threepartadvisors.com/audio

Active Managers Horizon Kinetics  Worth a careful read.  Note the underperformance of several famous investors.   Did they ALL become stupid at the SAME TIME?

Indexation-The-Jury-is-Almost-In

Perspective Jesse Felder Chartbook July 31 2018 (1)

Perhaps a way to beat the ETF driven overvaluation is to search for companies that are in few indexes such as TPL or CVEO, for example.  And search for owner-operated companies. Owner_Op_Paper  and Wealth-Index-Executive-Marketing-Summary-FINAL.  With founder or owner-operated companies, there is less float so fewer of these companies end up in ETFs.   When you see that Blackrock is a majority owner in a stock that you own but the stock represents only .003% of their five trillion dollar portfolio, you have a festering problem.   Look for those founder-led companies that treat shareholders fairly:

As Charlie Munger says, “Never underestimate the power of incentives.”

Have a good weekend.

Article by CSInvesting

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In my peripatetic life I have been a ruby smuggler, commodity trader, securities analyst, investment banker, and entrepreneur. Each role taught me more about value investing. - John Chew - The Editor

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