Hussman Goat Rodeo (HSGFX)

Covertibility · Feb 23, 2012

Don't own it, think the guy is nothing more than a charlatan with an economics degree who can write tales of woe, but this has to be the most absurd fund ever created. Check out the chart. This growth fund is heading back toward its 2008 low.

I don't think there has ever been a US invested growth fund that has gone sideways with the SP500 and the Nasdaq being up over 50% during the same span.

Specterx · Feb 23, 2012

Still managed around 6%/year since 2000 - far better than SPX or nasdaq.

When all's said and done I suspect Hussman will have the last laugh over all those relying on the Fed to keep their investments afloat - but certainly there are other managers who seem more suited to navigating the present situation, and I don't invest in his fund.

Covertibility · Jul 18, 2012

Per Morningstar.com

Hussman Strategic Growth HSGFX

YTD 1 yr 3yr* 5yr* 10*
HSGFX -8.05 -6.61 -4.75 -2.39 2.46
+/- S&P 500 TR -17.75 -12.55 -20.31 -2.03 -3.82

*Annualized returns

And for his defenders, Start at the 6th spot in commentary and you can see, only fools would give this guy money.

Perhaps he should go back to academia and just regurgitate the textbooks.

billyjoerob · Jul 19, 2012

He came out at the right time, which is key. The fund was launched at the height of the internet bubble, which gave him a few years of outperformance as he hedged positions. Back out those initial years and the return has been sub-par.

billyjoerob · Jul 19, 2012

http://finance.yahoo.com/echarts?s=HSGFX+Interactive#symbol=hsgfx;range=20080208,20091229;compare=^gspc;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

Looks like he hedged the crash, took off the hedge (and lost over 30%), then put the hedge back on. Basically a market timing fund. Nothing wrong with that, but he's a permabear WHO MISSED THE CRASH. That must be soooooo frustrating.

newwurldmn · Jul 19, 2012

Quote from billyjoerob:

http://finance.yahoo.com/echarts?s=HSGFX+Interactive#symbol=hsgfx;range=20080208,20091229;compare=^gspc;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

Looks like he hedged the crash, took off the hedge (and lost over 30%), then put the hedge back on. Basically a market timing fund. Nothing wrong with that, but he's a permabear WHO MISSED THE CRASH. That must be soooooo frustrating.

How does a permabear manage to lose like 30% (eyeballing it) in 2008?

billyjoerob · Jul 19, 2012

Peak to trough over 30%. Kind of belies the idea that this is a conservative fund. Conservative funds don't have 30%+ drawdowns.

Traveler · Jul 19, 2012

Not sure why you're so hard on him. Looks like he's beated his benchmarks by a huge amount. Last I checked he wasn't running an absolute return fund.

His 10 year Sharpe isn't that good vs. SP500TR. (.1 vs .3)

billyjoerob · Jul 19, 2012

http://finance.yahoo.com/q/bc?s=HSGFX&t=2y&l=on&z=l&q=l&c=^GSPC

Last two years' underperformance is really bad. Like I said, he's living off some good years about a decade ago. Ever since he's been underperforming. You say he's not an absolute return manager, which makes his underperformance even more hard to explain. Where's the methodology? He's market timing without being very good at it.

007Arb · Jul 19, 2012

Quote from Traveler:

Not sure why you're so hard on him. Looks like he's beated his benchmarks by a huge amount. Last I checked he wasn't running an absolute return fund.

His 10 year Sharpe isn't that good vs. SP500TR. (.1 vs .3)

Beaten his benchmarks by a huge amount??? What exactly do you think are his benchmarks being that he has lost money YTD and over the past 1, 3, and five year time periods and even though ahead 10 years ( a measy 2.24% annualized) still lagged the S&P over that 10 year period.