A week ago, I wrote that the “melt-up” might be beginning. Well, since then the financial media have gone into melt down mode. Talking heads have been buying stockpiles of food at Costco. The end is nigh.
Perma-bears have come out of their caves. Screams of joy were heard last night, ricocheting down the empty streets of Permabearville:
“CNBC returned my call” – “CNBC returned my call”
“They want a doom and gloom guest” – “They want a doom and gloom guest”
Packer & Co. is an Australian based investment firm. They received some media attention recently, thanks to a blunt assessment of the Australian economy (more on that later).
I checked out their website and was surprised to find half-yearly investor letters since 2008, with both thematic commentary and detailed portfolio breakdowns. They have also uploaded their Pre-Financial crisis (2007) and Pre-Tech Crash (1999) letters which are worth reading.
After working my way through 5 to 10 of these letters, it became clear that Packer & Co seem to have one of the rarest skills in investing. Many people think they have it, but few really do. Continue reading →
I came across Dan Rasmussen on Meb Faber’s podcast this week. Dan runs Verdad, an investment firm which seeks to invest in leveraged small value (i.e. low multiple) stocks. The research behind his approach you can find here.
In essence, Dan’s thesis is that the reason that private equity beat the market by 6% per annum after fees in the 1980s and 1990s, was its ability to:
As you can see from some of my recent posts, I’ve been searching for information on how different asset classes handle financial crises.
I came across a nice white paper from Meb Faber and his crew at Cambria, which has exactly what I was looking for. They have evaluated performance of stocks, bonds, commodities, gold and REITs during the S&P 500’s 10 worst months since July 1986. Continue reading →