Archive for March, 2016
It is truly remarkable that herd-like, trend-following hedge funds — which have delivered losses to investors in 4 of the past 5 years — continue to attract capital inflows. Ultimately: strong, uncorrelated returns are always generated from independent, thoughtful, fundamental analysis of the market. In all of human history, long-term determinant of value has not been herd-like perceptions of the majority but a clear-eyed and balanced assessment of market fundamentals by the minority. Whether it is politics or economics or finance, the majority is always playing catch up with the truth.