• Weekly Top 5: Why Hedge Funds Might Not Be So Smart

    by  • December 28, 2012 6:30 am • Weekly Top 5 • 0 Comments

    Here is this week’s Weekly Top 5.  These are articles that weren’t in the headlines and probably under the radar, but still well worth your time.

    With that, here are the Top 5 reads of the week.

    • JC Parets of AllStarCharts.com slices and dices January and creates a must read opus for the upcoming month
      • I met JC earlier this year and I’ve become a huge fan of his work.  He does a great job of blending technicals and seasonality, but is always open to listening and learning from others.
      • In this article he takes a look at all the major ‘January’ investing axioms.  From the January Barometer, to the first five days of January, to the January effect – JC breaks them all down.

     

    • The Economist takes a closer look at hedge fund performance and how it isn’t just bad this most recent year, but it’s been bad for the past decade
      • Lots of great stats and figures, but this chart below sums it all up.  You’d have been much better off buying the SPX and government bonds than investing in the average hedge fund.  Ouch.

    • Josh Brown, aka The Reformed Broker, creates an amazing list of the top financial bloggers.  From technicians, to researchers, to professors, he breaks it all down.  Save this, print this, do whatever you must – but make sure to spend some time and check out who Josh is following on a regular basis.
      • Josh is a superstar in the financial blogging world.  You can’t turn on CNBC anymore without seeing him on there at least once a day.  But what I really like about him is how down to earth and accessible he also is.  He’s been very kind to me, reposting some of my thoughts many times on his blog.  Simply a good guy and one who knows what people like to read, but more importantly he knows who isn’t full of BS in the industry.  Reading this post is a great place to start learning for ’13.
        • Plus he put Schaeffer’s in his list, so clearly it’s a nice list.

     

    • Bloomberg article ‘Americans Miss $200 Billion Abandoning Stocks’.  Hammers home just how many investors have missed this multi-year rally and how much it has cost them.
      • Chalked full of great figures and stats.
      • Here’s my favorite.  Individuals are selling into the rally, cutting the proportion of assets in stocks to 72 percent from 72.5 percent in 2009, according to 401(k) and IRA mutual fund data from the Washington-based Investment Company Institute compiled by Bloomberg. The data is for all equities, bonds and hybrid funds, and excludes money markets. Investors are lowering the proportion of stocks they own in retirement funds during a bull market for the first time in 20 years.

     

    • Ivan Hoff lists 13 Insights from Paul Tudor Jones.
      • PTJ is one of the most successful hedge fund managers ever and Ivan does a great job summing up some of his most famous insights.
      • I really like this one.  The concept of paying one-hundred-and-something times earnings for any company for me is just anathema. Having said that, at the end of the day, your job is to buy what goes up and to sell what goes down so really who gives a damn about PE’s?

     

     

     

     

     

     

     

     

     

     

     

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