Seeking Alpha

Chris Richey, CFA

 
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  • On Stocks, Expectations, And The Pursuit Of Happiness
    Tue, Oct. 21 1 Comment

    Summary

    • Happiness is more about expectations than it is about results.
    • The impact of short-term expectations on moment-to-moment human happiness has been highlighted by researchers who believe they have found the key to happiness, or at least “momentary subjective well-being”.
    • A subject’s happiness was not explained by the current pay-off, “but by the combined influence of recent reward expectations and predictions errors arising from those expectations”.
    • As value investors, it is our job to look for instances where the market sets a low EV current price on what is ultimately a stock that surprises to the upside.
    • We view it as our job to try to both counter short-termism in ourselves and exploit overly-depressed expectations in the market.
  • Being Intelligent About Smart Beta
    Fri, Jul. 18 4 Comments

    Summary

    • It is argued by proponents of Smart Beta that this allows investors to take advantage of “anoma-lies” in markets wherein certain companies outperform over certain periods and in certain conditions.
    • The only two aspects of Smart Beta which are truly “new” are the term itself and the use of a low-cost ETF vehicle to deliver it.
    • While we are fans of being selective about stocks and fees, as active managers we do not believe Smart Beta will consistently live up to the promise in its name.
  • The Devolution Of Diversification
    Thu, Apr. 24 GURU, FDP, QAI 9 Comments

    Summary

    • Proper portfolio diversification can be achieved with relatively few holdings.
    • Individual companies are more global and, therefore, more diversified in their operations.
    • Piling over-diversified active equity managers upon one another is an expensive, complex, and time-consuming proposition that is detrimental to returns.
  • Backtesting Value Investing Over The Last 10 Years: What Worked... And What Didn't
    Editors' Pick • Nov. 5, 2013 BFOR, PWC, IUSV 16 Comments
  • Pennies From Heaven And Investor Irrationality: When Bad News Is Good News
    Jul. 30, 2013 5 Comments
  • Why The Fed Balance Sheet Matters
    Apr. 30, 2013 21 Comments
  • 'World War C': Neosho Capital On The Currency War
    Feb. 8, 2013 FXY, FXE 2 Comments
  • The Federal Reserve: Picking Up Nickels
    Oct. 25, 2012 7 Comments
  • Risk-On/Risk-Off And Blackjack: Why RORO Is Always Doomed To Fail
    Jul. 23, 2012 SPY, DIA 11 Comments
  • Neosho Capital: The Ongoing Eurozone Debt And 'Risk-Free Rate'
    May. 1, 2012 GREK, EWP, FXE Comment!
  • The European Debt Crisis: A Symptom Of A Chronic Illness And The Nature Of The Beast
    Jan. 27, 2012 2 Comments