HF manager Seth Klarman still beats SP500 while 50% in cash

M

makloda

EARNING 22 percent on your investments while holding half of your portfolio in cash is no easy trick, but last year Seth A. Klarman pulled it off, and it was not the first time.

Mr. Klarman, a 49-year-old hedge fund manager, has turned in market-beating performances since 1983, while perpetually warning that the markets were dangerous and that investors should minimize risk.

What is his investment approach? He will not spell it out, although lots of people would like to know. On the Web, the price for his out-of-print 1991 book — “Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor” — has gone for $1,200 on Amazon and $2,000 on eBay.

More: http://www.nytimes.com/2007/05/13/b...?_r=1&ref=business&pagewanted=all&oref=slogin
 
Maybe he just bought a bunch of his books in '91 and has been feeding em out on the internet. Smart investor.
 
Long term trend followers might experience similar results trading five stocks included in the Dow Jones Industrial Average.

<img src=http://ec3.images-amazon.com/images/G/01/ciu/85/36/e0d4a2c008a0441d31e75010._AA240_.L.jpg \img>

Looking at an image of the book cover is free.
 

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Why would anyone pay 2 20 and to someone with 50 percent cash. 90 percent of the HF community is a joke and the investors are retarded.
 
Quote from JamesVU2000:

Why would anyone pay 2 20 and to someone with 50 percent cash. 90 percent of the HF community is a joke and the investors are retarded.
More...
Cause he returned 20% annually on average since 1983 and had only 11 negative quarters out of the total 97 quarters since the fund was launched?

Even if he held 99.99% in cash those numbers are fantastic.
 
Quote from JamesVU2000:

Why would anyone pay 2 20 and to someone with 50 percent cash. 90 percent of the HF community is a joke and the investors are retarded.
More...


Are you retarded? :D :D
 
Quote from makloda:

Cause he returned 20% annually on average since 1983 and had only 11 negative quarters out of the total 97 quarters since the fund was launched?

Even if he held 99.99% in cash those numbers are fantastic.
More...

but id rather the cash be in me bank then...:D
 
Quote from makloda:

EARNING 22 percent on your investments while holding half of your portfolio in cash is no easy trick, but last year Seth A. Klarman pulled it off, and it was not the first time.

Mr. Klarman, a 49-year-old hedge fund manager, has turned in market-beating performances since 1983, while perpetually warning that the markets were dangerous and that investors should minimize risk.

What is his investment approach? He will not spell it out, although lots of people would like to know. On the Web, the price for his out-of-print 1991 book — “Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor” — has gone for $1,200 on Amazon and $2,000 on eBay.

More: http://www.nytimes.com/2007/05/13/b...?_r=1&ref=business&pagewanted=all&oref=slogin
More...

My 'overrated' alarm is going off.
 
Yes, well he may be overrated but he could buy you , sell you short, and cover at ZERO.

So what does that make ............... u
 
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