Seeking Alpha

Veryan Allen

 
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  • Correlation and the S&P 500 [View article]
    Not frustrating or madness at all and risky index funds are the worst place to hide. Market is always evolving. A fund manager's job is to figure out how to make money regardless of conditions. NO excuses. So what if correlation is high and dispersion is low? If an old strategy isn't working find a new one that does or stop investing. Skilled relative-value is doing fine.

    Market always has been a casino. Don't go near it unless you have a clearly defined protectable edge. If you can't beat them, join them.
    Sep 7 06:08 PM | 4 Likes Like |Link to Comment
  • Index Investing [View article]
    Index funds are just bad CTA trend followers but with no stop loss and consequently unacceptable and expensive drawdowns.
    hedgefund.blogspot.com
    S&P 500 has underperformed cash since 1997.
    Absurd for passive fans to claim security analysis is pointless.
    Risky logic to assume market it went up last century so it will this one. Performance chasing has cost investors time when better and safer ways of making money now exist.
    Feb 18 11:31 PM | 1 Like Like |Link to Comment
  • The Everyman Hedge Fund [View article]
    Trading some ETFs is not hedge fund replication.
    hedgefund.blogspot.com
    Anyone with the rare ability to make value-added tactical asset allocation and security selection decisions on a consistently profitable basis is more likely to set up a REAL hedge fund than a clone.
    On a price versus value comparison, good hedge funds have LOWER fees than "copycats".
    Feb 1 01:09 AM | 1 Like Like |Link to Comment
  • Lessons from the Best-Ever Hedge Fund Manager [View article]
    The 20% a year investment is mentioned in the article. No-one asked because it is already named there.
    Mar 28 05:30 AM | Likes Like |Link to Comment
  • Bill Miller To Leave Legg Mason's Main Fund After Recent Poor Performance [View article]
    Poor "recent" performance? And an incredible streak of...luck. Any unfortunate client that gave Bill Miller money Thanksgiving 1998, hasn't made a cent, even with reinvested dividends. http://bit.ly/sumQYy
    Investors need access to quality fund managers. S&P500 itself has been a disaster. People can spend absolute returns not relative returns. LMTVX total return ZERO for 13 years.
    Nov 19 04:50 PM | Likes Like |Link to Comment
  • 'The Washington Post' Gets Pension Funds Wrong [View article]
    Pensions don't need to bet on the unhedged stock market. Better to assume a 10% return by investing in skills not asset classes.
    hedgefund.blogspot.com...
    No need to cut benefits or raise contributions. Just invest sensibly long/short.
    Mar 29 10:55 AM | Likes Like |Link to Comment
  • Alpha vs. Beta [View article]
    Alpha is value added. Beta is what an asset class might or might not deliver. I prefer to find managers that add value be exploiting the incompetence of the many more managers that add negative value.
    Having constructed alpha only portfolios for many years I am well aware that beta-based ideas still dominate despite how appaulingly they "perform". While alpha is indeed zero-sum, by far the largest available amount comes from hedge funds.
    Jan 30 03:52 AM | Likes Like |Link to Comment
  • 2010 Stock Markets Winners - And Losers [View article]
    BRIC or BUMPS?
    Bangladesh? Ukraine? Mongolia? Peru? Sri Lanka?
    Why not list other top performers in a "global" review of 2010?
    hedgefund.blogspot.com
    Jan 7 09:31 PM | Likes Like |Link to Comment
  • An Updated Look at Warren Buffett’s Portfolio [View article]
    Warren Buffett is a good investor but not the best.
    hedgefund.blogspot.com
    Long only buy and hold is just one strategy he runs in his multistrategy hedge fund. FX trading, commodities, event driven, options, futures, derivatives, arbitrage, emerging markets...

    Wrong to just follow a slice of the BRKA BRKB portfolio in isolation.
    Low frequency trading also underperforms high frequency trading.
    Dec 31 03:05 AM | Likes Like |Link to Comment
  • Are ETFs Really Dangerous? [View article]
    High correlation? No problem if you diversify properly.
    hedgefund.blogspot.com
    Sep 18 03:46 PM | Likes Like |Link to Comment
  • Bonds vs. Stocks: Allocating 100% of Assets to Alpha Opportunities [View article]
    Hi, thanks for the comments.

    Was referring more to what one would have received on 6mth Tbills. Sure I'm aware of the total return from long only unhedged bonds this year. Owning convexity via the 30yr zero did very well. I prefer long/short opportunities than betting on assets.

    Geographic facts alone aren't enough. Robust mathematical models are the other essential part of the equation and the first step in identifying ideas worthy of further analysis. But I did notice the hotels in Beijing were usually full last year but not the ones in Bogota. And it usually pays to take the other side of hype.
    Aug 22 09:15 PM | Likes Like |Link to Comment
  • Hedging Investments: Strategy Alpha Diversification Is the Way to Go [View article]
    Best? What alpha? HSGFX has produced an abysmal 5yr CAGR of 1.38% for 1.02% fees. Underperformed cash. Get what you pay for.

    I don't even begin due diligence on a manager unless their track record is at least 5yr CAGR +8% net of fees.

    Performance fees incentive the best funds to make money for their investors. Low fees just encourage journeyman to gather assets.
    Aug 5 08:51 PM | Likes Like |Link to Comment
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12 Comments
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