Ostensibly, the fact that the stock is half its book value makes it attractive, but high capital co

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One that builds on technology stocks and two moves away from them like the plague. One spread risk and one that responds quickly to opportunities and exposed a large profit or loss painful. But despite the differences, maks and spencer there are four wizards peak and 19% to 31% for their investors annually volatile and volatile
Returned from the cold: from the bottom in 2011, a peak of 31% this year after years at the top in recent years experienced Fairholme Fund manager Bruce Berkowitz, a difficult period, when in -2011 No tables found himself at the bottom maks and spencer of fund managers. But in 2012 the wheel turned again, and Berkowitz returned to its natural place. Fairholme Fund managed by this year introduced maks and spencer a yield of 31% compared with 11.5% in the index S & P 500.
The secret to success was not due to renewed only from the recovery fund holds stock prices, but also the approach that made his share exposure management within the fund. Berkowitz used to hold significant weight in the portfolio in cash. The importance of cash turns in times of falling, so Berkowitz can use to increase your stock holdings and the substrate the price of admission or the words: "Cash is like a financial Valium can calm you also the worst of times."
Traditionally, the practice Berkowitz hold cash at the rate of 20% -30% of the portfolio, but following market declines is reached the end of 2011 with a rate of 2% to 3% only. He also made sure way to increase the share exposure by leveraging the investment reflected also in warrants on his holdings. Fortunately, financial stocks trend reversal came a time when Berkowitz's flexibility is minimized.
In 2012 Agar again Berkowitz cash and is currently maks and spencer holding cash cushion estimated at 20% of the fund. Although the strongest results maks and spencer in 2012, a summary of the last five years the performance of the fund it manages are relatively warm, certainly in relation to the fund's past performance - a yield similar maks and spencer to that of the S & P 500 relative to the average annual return in excess of 10% in the past.
Fairholme's portfolio is currently relatively speculative. Average equity maks and spencer multiplier is 0.66, ie the - seemingly cheap stocks in the portfolio, suspiciously. AIG, holding prominent fund trades at a capital of only 0.51. In recent years, the insurance company has undergone processes of reducing risk - assets sold and returned to the U.S. government debt.
Ostensibly, the fact that the stock is half its book value makes it attractive, but high capital cost, 13% (reflecting the risk of the share), and the fact that the company is expected to produce in the coming years a return on equity of 6% to 7% only, make the price passable. Price will become especially attractive only if it is able over time to increase the return on capital to its destination - the 10% area.
Year when most hedge fund managers were engaged in risk management for fear renewal stock market crash, the hedge fund manager David Tepper Appaloosa introduced in 2012 an impressive return of about 25% compared with 5.8% disappointing maks and spencer hedge fund industry.
Tepper used to wait patiently, but in the case in which he identifies a chance he responds quickly, making it reveal more profit in case he was right, but a loss if wrong, or in the words: "I herd animal head - or prey on me or I get good grass."
Tepper came to consciousness after graduating in 2009 with a yield of 133%, and was named as director of the hedge fund industry's most rewarded. Its massive maks and spencer investment in shares and bonds of U.S. banks in February 2009, after the U.S. Treasury Department announced financial stabilization plan designed to inject capital into banks. During that period was a real fear of nationalization of U.S. banks and debt write. These are exactly the papers he bought.
Similarly, in 2012, he listened and policy makers responded quickly, this time in Europe. December 2011 waiting for the declaration of the LTRO (flow of cheap money to European banks by the central bank). Prices began to fall sharply, Tepper took advantage maks and spencer of this to buy defenses maks and spencer - indeed, the price of bonds problematic maks and spencer countries in Europe rose. July, after the announcement of the European Central Bank President maks and spencer Mario Drago its intention to keep the currency union, Tepper bought maks and spencer Greek bonds again earned .
Tepper also holds shares, and the rate of their entire portfolio is changing rapidly. Difficult to characterize its equity investment style: on the one hand, he invests market leader such as Apple and Google, on the other hand, companies operating in competitive industries and challenging as car tires (Goodyear).
Tracking his movements in the third quarter of 2012, it seems that he is counting on financial sector maks and spencer stocks lead the market and replace the locomotive maks and spencer technology. Is reduced by 25% the maintenance of his leader in QQQ, the ETF that tracks the Nasdaq, and generate new positions at AIG and Jay. According to Morgan. Tepper estimated in 2013 to be good stocks, and money Shizrim Federal Reserve Bank in will raise asset prices.
Foundation's flagship David Rolfe, Riverpark / Wedgewood, Shea last 12 months 18.7%. Unlike most investors tend to distinguish between growth and value stocks maks and spencer shares, Rolf, like Warren Buffett, examines the stock price relative to intrinsic value which includes already the growth rate of the business. Rolf used to buy new shares portfolio only after they meet the five following parameters:
Through fifth criterion maks and spencer ensures Rolf portfolio risk reduction through dispersion of stocks with low correlation between them. The largest maks and spencer holdings maks and spencer in his portfolio is Apple's share had lost 25% since September, but has produced a positive return of 30% from January. The main reason is fear in the stock due to investors' indications of cuts in producing components for the iPhone 5.
Rolf is not afraid of cuts and believes they result, Apple came naturally to the stage where its growth rate begins to level off. If it comes down to the story, then it is