Alex is an equity research analyst at Granite House Capital Management, a value oriented long/short hedge fund based in Boston. In May 2013, Alex was the feature of a Forbes Magazine article titled, "Meet One Of The Youngest And Brightest Hedge Fund Analysts That Isn't On Wall Street." He started investing in the stock market at age 10 and payed for college by working as an analyst for a Minneapolis based hedge fund. He focuses on the investing methods of great investors such as Warren Buffett. Alex looks to differentiate himself in the industry through persistent hard work and continuous learning. He is the youngest ever admitted member of the SumZero buyside network and was one of 14 buyside analysts in nation to be named to the 2012 SumZero Buyside Analyst Honors which was published in the Wall Street Journal as part of the 'Best on the Street' column and CNBC. Over 8,000 analysts were considered and he had the second highest return on the list. He was featured in the biography of investor Warren Buffett in a book called "Of Permanent Value: The Story Of Warren Buffett,". He maintains a blog called "Alex Bossert's Thoughts On Value Investing" with over 550 subscribers and over 300,000 site views. His work has been syndicated on Yahoo Finance, Google Finance, SeekingAlpha, and GuruFocus.
Linkedin Profile: http://www.linkedin.com/in/alexbossert
I look for opportunities to invest where the expected value is sufficiently greater than the cost to invest and look to invest the appropriate portion of the total funds available. To make a gambling analogy, a highly favorable investment would be one where you could invest $1 on a flip of a coin and receive $10 if it flipped heads and lose only $1 if it came up tails. However, you would not want to invest all of your funds because you would be broke if the coin turned up tails. Thus, the goal is to find investments where the edge is sufficiently large and then invest the appropriate portion of the funds. The Kelly formula provides a theoretical basis for the appropriate percentage of total funds to invest in a single opportunity.
However, in the real world, the precise odds are rarely known. Thus, I seek to develop the ability and obtain the knowledge to calculate the odds with a degree of accuracy, and conservatively enough, to be able to make intelligent invesments.
With regards to equities, which I have primarily invested in, I seek to understand the economics of the business so as to evaluate its potential for long term success or failure. I seek to use this understanding, along with an examination of its financial statements, to determine if the company is undervalued or overvalued. I may then decide to go long undervalued companies and I may decide to short overvalued companies. My preference is to find companies to purchase, rather than to short.
Spent thousands of hours looking for the HOME Run, (14 yrs) Now feel spent out,
Just finished my Schedule D-1, Big hole in the wall,CHCG,should be investigated and ET @ 10.00, No before the 10 for 1 reverse,
I'd rather be Lucky than good because Im on the outside looking in,(and crying)