Hedge Fund Three Bays to Close After Poor Performance
Comment of the Day

November 05 2018

Commentary by Eoin Treacy

Hedge Fund Three Bays to Close After Poor Performance

This article from Yahoo may be of interest to subscribers. Here is a section:

Value investing, which was pioneered by Benjamin Graham and Warren Buffett, has struggled since 2015 as so-called growth stocks beat out their inexpensive brethren. Sidman joins a growing list of managers that have given up on the strategy. In the last week alone, Bloomberg has reported plans by both Chieftain Capital Management and SPO Partners & Co. to return client money. John Griffin closed Blue Ridge Capital last year. Another long-time value investor, Eddie Lampert, has been flailing after his bet on Sears Holdings Corp. went awry.

Eoin Treacy's view

Value strategies work best after a really big decline because they are oriented towards identifying the mispricing of individual stocks relative to their intrinsic value. However, they are prone to selling too early as prices advance for exactly the same reason.

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