Jun 24, 2014 | Uncategorized
Deep value refers to a strategy that has proven to be extremely valuable and uncontroversial—yet it demands patience, diligence, and hard work. For this reason, deep value is not incredibly popular with more impatient investors, yet it has produced above-par returns...
Jun 20, 2014 | Uncategorized
In the past five days, a number of macroeconomic headlines have influenced the markets amid a lull in earnings seasons. The impact on asset classes was clear, and a reversal of trends that we have seen up until now in 2014: While the market generally was slightly up...
Jun 19, 2014 | Uncategorized
Pair trading is taking two stocks, usually in the same sector, and making opposite bets on them: go long one, go short the other. Long/short funds usually take this approach for two reasons. First, it helps hedge them against systemic risk; in other words, by going...
Jun 9, 2014 | Uncategorized
Shares in Family Dollar (FDO) are soaring today despite a string of disappointing quarterly results that suggest the business is hurting. This is all thanks to a large stake by activist hedge fund manager Carl Icahn, who is betting on a merger, takeover, or possibly...
Jun 4, 2014 | Uncategorized
“The primary test of managerial economic performance is the achievement of a high earnings rate on equity capital employed (without undue leverage, accounting gimmickry, etc.) and not the consistent gains in earnings per share” – Warren Buffett Return on Equity...
